City Tower is a 20-story, 133,000-square-foot office just southof London Wall. The building is leased to 30 tenants, and is 16%vacant, with an average rent of $38.24 per square foot.

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Great Portland purchased City Place House from Episo CPH LP, anentity of European Property Investors Special Opportunities LP, aproperty investment fund co-managed by AEW Europe and TristanCapital Partners. Prupim and Cleary Gottlieb are two of the tenantsof the 177,000-square-foot office, which is 100% leased to sevencompanies. The average lease is $57.97 per square foot, accordingto a statement by Great Portland, with a current annual rentalincome of $8.8 million. "Our intention is to refurbish the commonparts and floors as appropriate, repositioning the building into apotential shortage of grade A space in the city from 2011," said acompany spokesman.

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The firm will asset manage the joint venture and will pursue awide variety of value enhancing options, according to a GreatPortland statement, ranging from short-term asset management tolonger term, comprehensive redevelopment. It is likely thatnon-recourse debt financing will be arranged for the JV, accordingto the statement.

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Ric Lewis, Tristan chief executive, said in a separate statementthat the sale brought gains to his investors. "There has beensignificant interest in recent months in the UK and the market hasattracted stellar buyers. We remain interested in the UK becausequality assets are still available if you know where to find them,"he said.

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