Citigroup tower on the market for buyers offering 'in excess of £1bn'

The 42-storey Canary Wharf tower which houses the European headquarters of Citigroup is being put up for sale for more than £1bn, the commercial property agents Jones Lang LaSalle said yesterday.

The skyscraper at 25 Canada Square is the third tallest building in Britain, and was the UK's second-largest ever property transaction when Glenn Maud and Derek Quinlan bought it for £1bn at the height of the property boom in 2007.

The selling agents yesterday stressed the "exceptionally long income" secured by a rental agreement with another 24 years to run and a current annual income of £58m per year – or £47.50 per square foot – set to rise in 2015 and annually thereafter. Prospective purchasers can expect an annual income of nearly £70m within 10 years and more than £100m within two decades, according to JLL.

If the Canada Square deal tops £1.09bn, it will knock HSBC's Docklands headquarters off the top spot in the league of the UK's biggest ever property deals.

Interest is expected from UK real estate investment trusts, insurers and pension funds, as well as the overseas investors who continue to show a marked appetite for London commercial property.

The market has bounced back handsomely since the recession. London was the world's largest commercial property investment market last year, with overall transactions up 34 per cent.

Some 62 per cent of the £5bn-worth of West End deals were with foreign buyers, a proportion that rose to 68 per cent in the City. Landmark deals in 2010 included the Norwegian sovereign wealth fund's £448m purchase of a stake in Regent Street, and Qatar's £1.5bn acquisition of Harrods, the Knightsbridge department store.

The boom is expected to continue this year. JLL estimates that more than £52bn is ready to flood into Britain from overseas, more than 80 per cent of it targeting London.

Mr Maud and Mr Quinlan bought 25 Canada Square from Royal Bank of Scotland for £1bn four years ago, backed by a consortium of banks.

The sale is a consensual move and the money raised will reportedly be used to pay back the debt taken out to buy the tower in 2007.

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Guru Careers: Tax Manager / Accountant

£35 - £50k DOE: Guru Careers: A Tax Manager / Accountant (ACA / CA / CTA) is n...

Ashdown Group: Contracts Executive - City of London

£35000 - £37000 per annum + benefits: Ashdown Group: Contracts Executive - Cit...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE £45K: SThree: SThree Group have been well esta...

Recruitment Genius: Call Centre Debt Collector - Multiple Roles

£21000 per annum: Recruitment Genius: This is an exciting opportunity to join ...

Day In a Page

Turkey-Kurdish conflict: Obama's deal with Ankara is a betrayal of Syrian Kurds and may not even weaken Isis

US betrayal of old ally brings limited reward

Since the accord, the Turks have only waged war on Kurds while no US bomber has used Incirlik airbase, says Patrick Cockburn
VIPs gather for opening of second Suez Canal - but doubts linger over security

'A gift from Egypt to the rest of the world'

VIPs gather for opening of second Suez Canal - but is it really needed?
Jeremy Corbyn dresses abysmally. That's a great thing because it's genuine

Jeremy Corbyn dresses abysmally. That's a great thing because it's genuine

Fashion editor, Alexander Fury, applauds a man who clearly has more important things on his mind
The male menopause and intimations of mortality

Aches, pains and an inkling of mortality

So the male menopause is real, they say, but what would the Victorians, 'old' at 30, think of that, asks DJ Taylor
Man Booker Prize 2015: Anna Smaill - How can I possibly be on the list with these writers I have idolised?

'How can I possibly be on the list with these writers I have idolised?'

Man Booker Prize nominee Anna Smaill on the rise of Kiwi lit
Bettany Hughes interview: The historian on how Socrates would have solved Greece's problems

Bettany Hughes interview

The historian on how Socrates would have solved Greece's problems
Art of the state: Pyongyang propaganda posters to be exhibited in China

Art of the state

Pyongyang propaganda posters to be exhibited in China
Mildreds and Vanilla Black have given vegetarian food a makeover in new cookbooks

Vegetarian food gets a makeover

Long-time vegetarian Holly Williams tries to recreate some of the inventive recipes in Mildreds and Vanilla Black's new cookbooks
The haunting of Shirley Jackson: Was the gothic author's life really as bleak as her fiction?

The haunting of Shirley Jackson

Was the gothic author's life really as bleak as her fiction?
Bill Granger recipes: Heading off on holiday? Try out our chef's seaside-inspired dishes...

Bill Granger's seaside-inspired recipes

These dishes are so easy to make, our chef is almost embarrassed to call them recipes
Ashes 2015: Tourists are limp, leaderless and distinctly UnAustralian

Tourists are limp, leaderless and distinctly UnAustralian

A woefully out-of-form Michael Clarke embodies his team's fragile Ashes campaign, says Michael Calvin
Blairites be warned, this could be the moment Labour turns into Syriza

Andrew Grice: Inside Westminster

Blairites be warned, this could be the moment Labour turns into Syriza
HMS Victory: The mystery of Britain's worst naval disaster is finally solved - 271 years later

The mystery of Britain's worst naval disaster is finally solved - 271 years later

Exclusive: David Keys reveals the research that finally explains why HMS Victory went down with the loss of 1,100 lives
Survivors of the Nagasaki atomic bomb attack: Japan must not abandon its post-war pacifism

'I saw people so injured you couldn't tell if they were dead or alive'

Nagasaki survivors on why Japan must not abandon its post-war pacifism
Jon Stewart: The voice of Democrats who felt Obama had failed to deliver on his 'Yes We Can' slogan, and the voter he tried hardest to keep onside

The voter Obama tried hardest to keep onside

Outgoing The Daily Show host, Jon Stewart, became the voice of Democrats who felt the President had failed to deliver on his ‘Yes We Can’ slogan. Tim Walker charts the ups and downs of their 10-year relationship on screen