Commerz Real have instructed Savills to sell its 10 Aldermanbury building in the City of London.
The German fund managing firm are marketing the site for £260 million, representing a 5.5% yield. The building was originally developed by Legal & General and Stanhope, and is let to JP Morgan until 2025.
Average rental prices for office space within the development range from around £50 per square foot. The site is near to the Bank of England, and Commerz Real expect to attract interest in the trophey property from sovereign wealth funds.
The property is being marketed for sale within the same week as CB Richard Ellis Loan Servicing (CBRELS) announced the sale of eight property in the £1.15 billion White Tower scheme. They have instructed their strategic investment advisers Knight Frank and CB Richard Ellis to sell all properties apart form the Aviva Tower. Some properties are being marketed individually including Leadenhall Court and Alban Gate, others marketed as a packaged – the Thames Portfolio. It is estimated that they are looking for around £700 million for the properties in total.
There is a high demand for City properties for firms and fund managers to invest in with attractive yields, current news and trends such as above truly reflect this.