Derwent London is in talks to buy the Pentagon building at 48 Chiswell Street, EC1 , from Lancer.
The listed propco has agreed to pay around £60m for the 96,000 sq ft City fringe block, reflecting a yield in the region of 5.5%.
The building is occupied by Lloyds on a 10-year lease with a five-year break and has good potential for a redevelopment in the medium term.
Derwent is thought to have been attracted by the low capital value per sq ft and the large atrium which offers similar redevelopment potential to its highly successful Buckley building scheme in Clerkenwell.
It is thought to have seen off competition from several UK funds, including Legal & General, to agree terms with Lancer, which manages the building on behalf of Abu Dhabi.
All parties declined to comment.
