CBRE and Eastdil Secured have been instructed to sell Canary Wharf Group’s 50% stake in 20 Fenchurch Street, EC3, for around £600m.
The asking price for the building, known as the Walkie Talkie, reflects a yield of circa 3.75%.
Canary Wharf Group’s interest includes the 12% stake controlled by Morgan Stanley Real Estate, which formally announced its intention to sell to the building’s co-owners earlier this year.
It only owns around 15% of the building, but is selling the rest of the 50% stake on behalf of investors including China Investment Corporation, the Qatar Investment Authority and Morgan Stanley.
It bought the stake from developer Land Securities in 2010.
It is understood Land Securities is not considering selling its 50% stake in the building. Earlier this month, Oxford Properties and British Land sold 122 Leadenhall Street, EC3, to Hong Kong investor CC Land for £1.15bn – a net initial yield of 3.5%.
British Land originally instructed Cushman & Wakefield and Eastdil Secured to sell its 50% stake in the Cheesegrater, but Oxford Properties was later convinced to sell its interest after an irresistible offer from CC Land.
Prime City yields have hardened to 4% following continued demand from investors since the Brexit vote combined with falling supply, according to Savills.
Canary Wharf Group did not respond to requests for comment.
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