OverseasProperty:Citypoint, a skyscraper in the City of London, is set to become the most expensive building ever sold in the UK.
It is understood that Beacon Capital, a private US company, is poised to agree terms to buy the 34-storey tower for close to its asking price of £650 million (€955 million).
Tishman Speyer, which owns the property with partners Schroders, SITQ and UBS, put the building on the market in February through agent CB Richard Ellis, slightly more than a year after buying it for £520 million (€764 million), or at a yield of 5.8 per cent.
Beacon, assuming it pays the asking price, would acquire the building at a yield below 5 per cent.
CBRE and Tishman refused to comment.
The deal comes days after Merrill Lynch put its headquarters under offer for £600 million (€881 million) to GIC, the investment arm of the government of Singapore.
Other banks taking advantage of the bullish property market to sell their London headquarters include Goldman Sachs and HSBC.
The latter is expected to get close to £1 billion (€1.469 billion) for its Canary Wharf offices, which would be a new record.
The sale of Citypoint follows Tishman's sale of Goldman Sach's European headquarters on Fleet Street to Jesta, a Canadian property group, for £355 million (€522 million) last month. However, Jerry Speyer, Tishman's president, has denied that he is calling the top of the City market.
Citypoint, which is the third tallest skyscraper in the City, was previously owned by a fund run by Schroders and Pillar Properties, the fund management business that was acquired by British Land.
The 65,682sq m (707,000sq ft) building on Ropemaker Street is one of the most visible and recognisable structures in the Square Mile.
It was built in 1967 as Britannic House and was used as the headquarters for British Petroleum. It currently counts Macquarie Bank, Simmons & Simmons and Vinson & Elkins among its tenants.
The average rent on the property is about £49 per sq ft (€72 per sq ft), with most of the leases expiring after 2020.
