Bloomberg News

London’s Tower 42 Is for Sale at 3% Discount to Price Last Year

September 14, 2011

Sept. 14 (Bloomberg) -- Tower 42, the first skyscraper built in London’s main financial district, was put up for sale at a 3 percent discount from the price its owners previously sought 17 months ago.

Funds managed by BlackRock Inc. and LaSalle Investment Management are seeking “in excess of” 290 million pounds ($457 million) for the 600-foot (185 meter) tower and five other buildings on the 2.2-acre (0.89-hectare) site, the companies said today in a statement.

Tower 42’s owners withdrew it from the market in August 2010 even though they received “significant” offers for the property, which had an asking price of more than 300 million pounds. At the time, they said they would proceed with their own redevelopment projects for the buildings and focus on leasing space to take advantage of rising office rents in the City of London.

LaSalle Investment has since replaced Hermes Real Estate as manager of the Royal Mail Pension Plan fund, which owns a 50 percent stake in the estate.

Office values in central London have climbed on investor demand attracted by a weak pound and as a shortage of prime space is lifting rents. Jones Lang LaSalle Inc. was rehired to manage the property’s sale.

--Editors: Ross Larsen, Kara Wetzel.

To contact the reporter on this story: Simon Packard in London at packard@bloomberg.net.

To contact the editor responsible for this story: Andrew Blackman at ablackman@bloomberg.net.


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