Credit Suisse is preparing to bring its 540,000 sq ft headquarters in Canary Wharf, E14, to the market.
The Zurich-based financial services company has appointed CBRE to carry out a review of 1 Cabot Square, which is likely to lead to a sale-and-leaseback of the 21-storey property.
A price tag is dependent on the leaseback rent, which would have to be agreed between Credit Suisse and the building’s eventual owner. However, a price of £370m has been mooted, based on average rents of £37.50 per sq ft and a yield of 5.25%.
A spokesman for the firm said: “Credit Suisse regularly reviews its global property portfolio in order to ensure we are maximising the efficient use of capital and resources.”
James Beckham, director of capital markets at Jones Lang LaSalle, said: “While there are several large assets coming to market, few have such a long income profile. It should appeal to private and annuity-style investors looking for exposure to the Canary Wharf market.”
Only a handful of the £6bn of City and Docklands assets currently on the market offer at least 15 years of rental income. They include Drapers Gardens, EC2, and 1 Bunhill Row, EC1.
Credit Suisse first asked CBRE in March 2009 to value Cabot Square and the 270,000 sq ft 20 Columbus Courtyard, also in Docklands. The latter was sold to Lebanese investment firm M1 Real Estate for £155m in October 2009. The bank opted against selling Cabot Square, believing it would not have represented good value for its shareholders at that time.
Sources said the plan to move from owner to tenant was a way for Credit Suisse to raise equity quickly and focus on its day-to-day operations.
Credit Suisse was one of the first major occupiers in Canary Wharf when it moved to the east London campus in 1993.
james.buckley@estatesgazette.com
