A client of Knight Frank Investors has pulled out of a deal to buy Slaughter & May’s UK headquarters at 1 Bunhill Row, EC1, and has simultaneously put 3 Bunhill Row under offer.
A joint venture between ING Insurance and Canadian Pension Plan Investment Board put the trophy City property on the market in September through Jones Lang LaSalle.
The jv is now in advanced discussions to sell 1 Bunhill to another party and was expected to put the 260,000 sq ft block under offer in the coming days.
The client of Knight Frank Investors, which put 1 Bunhill under offer last month on behalf on the investor for around £192m – a yield of more than 5.5% – is now under offer to buy 3 Bunhill Row from Henderson for around £83m, reflecting a yield of 5.25%. However, the client is not advised by Knight Frank Investors on the deal to buy 3 Bunhill Row.
The 1 Bunhill Row property is viewed as one of the most appealing trophy assets for investors, given that it is one of the only buildings on the market in the Square Mile offering 15 years of income, with a lease break in March 2021. The block is let to UK law firm Slaughter & May until June 2026.
james.buckley@estatesgazette.com
