Teachers and Pillar in Pounds 167-M City Sale

LONDON-In one of the City of London’s biggest investment sales this year, a private overseas investor has paid £167 million ($260 million) for Cannon Bridge, a 285,000-sf office building constructed on a raft over the railway tracks at Cannon Street rail station on Dowgate Hill, London EC4.

The principal tenant of Cannon Bridge is LIFFE, the London futures and derivatives exchange. The sale price represents an equivalent yield of 7.9%. Pillar held a 25% interest in Cannon Bridge and was the asset manager for the complex, with Teachers holding the remainder.

Pillar said the sale of Cannon Bridge is the final part of its strategy–announced lastYear–to pull out of direct investment in the City. From now on it will channel its City activities through the City of London Office Unit Trust where it holds a 36% stake and is property advisor.