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.

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.

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.