Citigroup’s Office Building: To Be Sold for $1.6B

April 13, 2011 / Elizabeth Buckley, Commercial Property Analyst

Citigroup’s office building in Canary Warf, the international financial conglomerate with operations in consumer, corporate, and investment banking and insurance’s headquarters in Europe is now on sale for about £1bn or US$1.6345 billion. The office building is said to be one of United Kingdom’s tallest building, and is going to be sold by Derek Quinlan, an Ireland-based tax inspector turned property magnate, and Glenn Maud, a British businessman.

Citigroup’s Office Building: To Be Sold for $1.6B

In another business partnership, an office property in northwest Austin, Texas was recently acquired. The San Antonoi-based USAA Real Estate Company and Crimson Real Estate Fund recently acquired an office building from Wells Fargo Bank.

The selling of the office tower in Canary Warf for over $1 billion, according to reports, was the second largest property deal in UK, next to SBC’s Docklands headquarters.

The two businessmen, Quinlan and Maud, acquired the 1.2 million square feet office building in 2007 for $1.6 billion from Royal Bank of Scotland, during the height of the commercial property boom. But, because of property prices kept falling for the lat two years, the pair, Quinlan and Maud have been trying to offload the office building since last year to pay off their borrowings.

The 42-storey office building is Citigroup’s headquarters for Europe, Asia, and the Middle East. Citigroup is leasing the office property for £47.50 or $78 per square feet, on a long-term lease.

According to the director in Jones Lang LaSalle’s Investment team, who is handling the selling transaction of 25 Canada Square, Ross Davies, the sale of the office building is already creating a huge amount of interest from private investors from the United States, Middle East and Far East.


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