Kuwaiti property company St Martins is making a play to buy 70 Gracechurch Street in the City of London for £210m.
St Martins is in talks to buy the off-market EC3 City trophy following a spate of recent interest in the property.
The negotiations are said to be in a state of flux given 70 Gracechurch Street is not formally on the market and talks with various parties remain ongoing.
St Martins has been actively seeking investment opportunities in London in recent weeks. In January it completed its purchase of 5 Canada Square in Canary Wharf, E14, from Evans Randall for £385m, reflecting a yield of 5%.
Last year it made an off-market approach to buy Ropemaker Place for around £500m, and also bid in November to buy 5 Aldermanbury Square for £225m, reflecting an initial yield of 5.33%.
DTZ was instructed to sell 70 Gracechurch Street in April 2011 for around £200m, reflecting a 5.3% yield, in what was one of the largest off-market assets to become available in London that year. However the building was later withdrawn owing to a significant movement in swap rates.
Any buyer for the asset would purchase the special purpose vehicle in which the 180,000 sq ft block is held.
The development has been an attractive prospect for some investors because of the fixed annual rental uplift agreements in place with current tenants. The building is let on long term leases to insurer XL Group and Marks & Spencer, which occupies a 90,000 sq ft store at ground level.
All parties declined to comment.
The negotiations are said to be in a state of flux given 70 Gracechurch Street is not formally on the market and talks with various parties remain ongoing.
St Martins has been actively seeking investment opportunities in London in recent weeks. In January it completed its purchase of 5 Canada Square in Canary Wharf, E14, from Evans Randall for £385m, reflecting a yield of 5%.
Last year it made an off-market approach to buy Ropemaker Place for around £500m, and also bid in November to buy 5 Aldermanbury Square for £225m, reflecting an initial yield of 5.33%.
DTZ was instructed to sell 70 Gracechurch Street in April 2011 for around £200m, reflecting a 5.3% yield, in what was one of the largest off-market assets to become available in London that year. However the building was later withdrawn owing to a significant movement in swap rates.
Any buyer for the asset would purchase the special purpose vehicle in which the 180,000 sq ft block is held.
The development has been an attractive prospect for some investors because of the fixed annual rental uplift agreements in place with current tenants. The building is let on long term leases to insurer XL Group and Marks & Spencer, which occupies a 90,000 sq ft store at ground level.
All parties declined to comment.
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