Tower 42, the tallest occupied skyscraper in London, is expected to fetch £300 million (€339 million; $461 million) when Hermes Real Estate and Blackrock’s UK property fund put the building up for sale this week, according to The Financial Times.
The 600-feet former NatWest tower near the Bank of England is the largest single real estate deal this year in the Square Mile according to the report, and reflects the surge in interest that is taking place among property buyers for major assets in key cities around the world. Included in the sale are five other low-rise buildings, including the Grade-I listed Gibson banking hall.
Prices in the central London market have risen thanks to a boom for prime property in recent months, and some are even back to peak levels from three years ago.
The fund managers who bought the tower in 1998 are reportedly looking to rebalance their portfolios with the sale, which will be advised by property agent Jones Lang LaSalle.
Tower 42 achieved a price of roughly £70 per square foot at the peak of the market, and deals are reportedly being negotiated at about £50 per square foot, although that price could surge even higher as the supply for office space tightens.