Banco Santander has appointed Savills to sell its stake in the London Underwriting Centre at 3 Minster Court, EC3.
A trio of funds managed by the bank own a 50% stake in the 999-year long leasehold interest of the 300,000 sq ft building.
German fund manager Wölbern owns the remaining interest in the long leasehold. M&G Real Estate owns the freehold.
Savills has been instructed to seek bids in excess of £75m, reflecting a yield of 8.4% and a capital value of £540 per sq ft.
The building is fully let to the London Underwriting Centre on an FRI lease at a rent of £13.3m expiring on 24 March 2016, offering the potential for a substantial refurbishment and repositioning.
However, 3 Minster Court also has the potential for a wider redevelopment scheme for any investor able to take full control of the building and its neighbours, 1&2 Minster Court.
M&G owns the other two buildings on the Minster Court Estate. Together the three buildings comprise more than 600,000 sq ft.
Santander bought its 50% stake for £110m in February 2007.
The Bankhaus stake was refinanced by ICG-Longbow in April this year with a £40m loan which expires in late 2015, in line with the building’s leases.
