The Citigroup tower in Canary Wharf, E14, has been formally brought to market this week for more than £1bn.
The tower’s owners, Glenn Maud and Derek Quinlan, have instructed Jones Lang LaSalle to sell the asset.
Proceeds from the long-anticipated sale will be used to repay debt used to buy the tower for £1bn in 2007. There is thought to be around £875m of senior debt and a £100m charge on an interest rate swap.
The 1.2m sq ft building at 25 Canada Square is let to global banking group Citigroup, which has an unexpired lease term of 24 years and a rental income of £57.6m pa. The lease is subject to an uplift in 2015, followed by annual rises indexed at 3.2%.
Interest is expected from UK REITs, insurers, annuity funds and overseas investors.
JLL said that the annual income return on the initial investment would reach nearly £70m within 10 years and more than £100m within 20 years.
Also in London’s financial district, administrator PwC has appointed Cooke & Powell to market five adjacent City of London offices known as the Leadenhall Triangle, EC3.
PwC, administrator of AM Holdings, DB5, DB6 and Optimum Properties, is to sell the properties, which total 460,000 sq ft of office and retail space.
