"This is a long-term personal investment in a prime property inthe heart of London's new financial center," Quinlan Privatefounder Derek Quinlan offered in a release unveiling the 25 CanadaSq. deal. Having the world's largest bank as the sole tenant was amajor draw, according to Quinlan, and will generate a greaterrental rate than that commanded at the HSBC headquarters. Rentalincome there is estimated by one report at $87 million, compared to$93 million in the Citigroup deal, which runs through 2026.Citigroup has had a presence in the building since 2000.

While outpacing the income stream to Metrovacesa, theSpanish-based buyers of the HSBC tower, 25 Canada Sq. is trading ata yield of just 4.5%, well below the average for similarinvestments in the district. Quinlan and Propinvest, which are50/50 partners, explain that returns will improve over time due toperiodic rental escalations. Designed by Cesar Pelli &Associates and Adamson Associates, 25 Canada Sq. has an impressivearchitectural pedigree, adds Quinlan, who cited the efficiency andcondition of the tower as other attributes. Cesar Pelli designedseveral Canary Wharf buildings, including 1 Canada Sq. and 25 and40 Bank St.

The Royal Bank of Scotland is also reportedly marketing itsnearby 5 Canada Sq., a 500,000-sf building leased to Credit Suisseand the Bank of America. An asking price has not been indicated forthat asset, one of 24 office buildings on the 97-acre Canary Wharf.The complex, which opened in 1991, today accommodates 80,000employees in a 14.1-million-sf footprint. Besides the office space,Canary Wharf has five retail centers, two conference facilities,numerous cafes and restaurants and a swath of sports and fitnessclubs. There are also two light rail stations and other publictransit options on site, plus five parking garages. The Citigroupheadquarters has 219 basement parking spaces of its own.