CIT Group is under offer to buy a major refurbishment opportunity close to London’s Silicon Roundabout for around £107m.
The private equity investor has agreed terms to buy Finsbury Tower, 103-105 Bunhill Row, EC1, from Hermes Investment Management.
The sale of the tower, which was on the market via Michael Elliott for £100m, will bring a significant return for Hermes. It bought the building in 2013 for £67.3m in an off-market deal from HNS Group.
The skyrocketing value reflects the demand for
development opportunities around Old Street, which has seen rapid rental growth due to the lack of available office space in the area.
The 15-storey tower totals 178,079 sq ft, including 152,284 sq ft of offices. Just over 80,000 sq ft of the offices are vacant, with all but two floors empty by May 2016. Full vacant possession can be achieved on the upper floors in 2017.
The building has the potential for a major office-led refurbishment but could also be converted to residential and hotel use, according to Michael Elliott.
Strutt & Parker is advising CIT. All parties declined to comment.
