Tower 42: The City’s Tallest Skyscraper Falls Short of Sale
Despite interest from Chinese billionaire Joseph Lau of Chinese Estates Group, Tower 42 – a 600ft office skyscraper in the City of London – has been pulled from the market.
The property was put up for sale by Tower 42 Estate, which is funded by a combination of investors including Blackrock, Hermes Real Estate and LaSalle Investment Management.
As we reported in July, Chinese Estates Group put in a ┬ú300m bid for the skyscraper, and the sale was expected to go ahead with the inclusion of a number of nearby properties including the Grade I listed Gibson banking hall.
Several companies currently occupy space at the former Natwest Tower, and the majority of their leases are due for renewal within the next few years. This would suggest a number of opportunities for the buyers to renegotiate more favourable terms and rental values, and is perhaps the reason why the owners decided to pull the property from the market.
“While there were in excess of forty viewings with good international interest and a significant number of bids, the partnership has decided to remove the opportunity from the market,” the owners commented, according to Property Week.
“This new direction in strategy, also a result of an inflow of funds, enables the Partnership to progress a number of asset management and value-add initiatives across the estate.
“These include significant development potential and leasing opportunities, at a time when rents in the City market are clearly on an upward trend.”
Joseph Lau of Chinese Estates Group currently owns numerous properties throughout Hong Kong, and featured in this year’s Sunday Times Rich List with an estimated wealth of ┬ú3.8bn.