Citigroup is close to striking a deal to buy the Canary Wharf tower in which its own headquarters is located, it is reported.
The 42 storey 25 Canada Square building was put up for sale by its owners AGC Equity Partners last autumn. Now reports suggest that the current tenants Citigroup are close to agreeing a deal to purchase it.
It is also reported that Citigoup will continue to occupy the building as its EMEA HQ, potentially also relocating staff from an adjacent building.
The deal, should it complete, is significant for several reasons: It will be seen as very much an endorsement of the health of London’s commercial market particularly with Brexit just a few weeks away. It is also fairly unusual for high profile occupiers to buy the building they currently lease rather than selling the building they currently own and becoming tenants – reports suggest that Citigroup pay circa £46.5m a year in rent for the parts of the building they occupy, which is also let to other tenants.
Also, if it proceeds close to or near the rumoured asking price, it will become one of the largest UK commercial transactions ever recorded.