LONDON-The owners of one of the tallest offices in the Canary Wharf district, the 655-foot-tall Citigroup Inc. region headquarters tower, is up for sale for more than $1.6 billion. Owners Glen Maud and Derek Quinlan, who bought the tower for about $1.6 billion in 2007 from the Royal Bank of Scotland, have hired Jones Lang LaSalle to sell the property.
The tenant at 25 Canary Wharf has a remarkable 24-year lease, with annual rental income of about $94 million. Annual returns could reach about $160 million near the end of the term, according to JLL.
It’s not clear why the owners are selling the tower, though the two reportedly are attempting to pay off the debt on the building. The Bank of Scotland bought the East London tower for about $2 billion in 2003 from the Canary Wharf shareholders. The district has about 15.5 million square feet of commercial activity, including 29 office buildings, 200 shops, bars and restaurants and a working population of about 93,000.
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