Jones Lang LaSalle appointed to sell 25 Canada Square

Offers in excess of £1bn sought for iconic landmark office building

Article posted: 13 Apr 2011

Jones Lang LaSalle has been instructed as the sole agent to sell 1.225m sq ft of office space in Canary Wharf at 25 Canada Square. Offers in excess of £1bn are anticipated on the iconic 42-storey office tower which, at 200 metres, is the third tallest building in the UK and is visible across the London skyline.

 
This prestigious building is let entirely to Citigroup Inc, the American multi-national financial services company, and serves as its EMEA headquarters. Offering an exceptionally long income with a weighted unexpired term of 24 years the current rental income totals £57.6 million per annum (£47.50 per sq ft), and is subject to an uplift in 2015 followed by annual increases, indexed at 3.2%.

 
Prospective purchasers could expect the annual income return on the initial investment to reach nearly £70m within ten years and over £100m within 20 years.

Jones Lang LaSalle’s City Investment team, who are managing the sale of the landmark offices in the Docklands, expect investor interest to come from all corners of the globe as well as UK REIT's, Insurers and Annuity funds as non-domestic investment continues to target the coveted London real estate market.

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Posted by Sara