CBRE Global Investors is making a third attempt to offload Bechtel House in Hammersmith, W6.
The fund manager has been trying to sell the 170,000 sq ft block since November last year and has twice put it under offer.
In February, investor MGPA pulled out of a circa £53m – 8.5% yield – deal to buy the building, and earlier this month Wainbridge – which had made several offers on Bechtel House – also walked away from a deal.
Now Legal & General is said to have gone under offer at a price just below asking. Its acquisition is expected to complete by early June.
The previous potential purchases are understood to have collapsed because of concerns over whether the tenant, engineering firm Bechtel, will renew its lease when it expires in September 2014.
One agent who had been looking at the building, said: “Some of the bidders were trying to be opportunistic and restructure leases with the tenant ahead of a purchase. Bechtel was not willing to commit to a new lease under deadlines set by some potential buyers.”
However, sources said that the lack of grade A space in the area meant that Bechtel was likely to renew its lease and that L&G would seek to increase the rent at that time.
The property currently generates around £4.4m pa, equating to £24 per sq ft.
CBRE is advising on the sale; L&G is represented by Tudor Toone.
Joanna.bourke@estatesgazette.com
