Approaches from investors hungry for value-add opportunities in the City have prompted QSuper to consider a £110m sale of Exchequer Court, 33 St Mary Axe, EC3.
The Australian superannuation fund, together with investment manager AEW Europe, has drafted in Strutt & Parker to advise after the unsolicited approaches.
QSuper bought the 146,500 sq ft block two years ago for £82.5m – a 6.75% yield – in its debut UK property deal.
The building is multi-let with several large leases due to expire in the next few years.
Private equity fund managers, developers and institutions are targeting short-let and unlet assets, betting on 20%-plus rent rises over the next three years.
Recent sales such as Aldgate Union, E1, 24-30 West Smithfield and 150 Holborn, both EC1, have attracted dozens of inspections and multiple bids well over their respective asking prices.
The upcoming sale of 1 Alie Street, E1, by the City of London Corporation, is expected to attract similar interest.
DTZ has been appointed to sell the property at a guide price of £40m, reflecting a 4.5% yield.
The 107,000 sq ft block is let to more than 40 small tenants on leases with an average length of just over two years at rents of just £20 per sq ft.
