Blackstone is in negotiations to buy Alban Gate at 125 London Wall, EC2 , for around £300m from the Carlyle Group.
The US private equity giant is closing in on a deal for the 382,000 sq ft building at close to the asking price, reflecting a 6% yield, however it is not yet formally under offer.
Alban Gate is fully let to JP Morgan until 2025, which itself is close to fully sub-letting the building.
Lloyds is under offer for around 100,000 sq ft in the building on the lower six floors, while Estates Gazette publisher Reed Elsevier is under offer for floors 10 and 11 and half of 12.
Nabarro signed for around 120,000 sq ft at the top of the building more than a year ago and Invesco and the Financial Reporting Council complete the schedule.
The trophy purchase would mark a change in strategy for Blackstone, which has recently focused on short let or vacant buildings in the City which can be quickly redeveloped or refurbished in order to take advantage of the forecast growth in rents.
It is thought the investor’s long term strategy for the building is likely to focus on agreeing a lease surrender with JP Morgan.
Gaw Capital Partners has placed the building under offer on behalf of investors earlier this year but the deal collapsed last month.
GM Real Estate is advising Carlyle.
jack.sidders@estatesgazette.com
