RBS Completes Nearly $2.1B Sale

LONDON-After months of negotiations, a 50/50 joint partnership of Quinlan Private and Propinvest has completed its purchase of one of the city’s top commercial properties, 25 Canada Sq. in the Canary Wharf district. The 42-story, 1.2-million-sf tower traded for nearly $2.1 billion, the second highest amount ever paid for a single real estate asset in the UK. The seller is the Royal Bank of Scotland.

The hefty price reflects the credit strength of the tower’s sole tenant, Citigroup, which has a lease for the entire building that runs to 2026. In a July 2 GlobeSt.com article announcing the agreement, industry sources reported the rental income for 25 Canada Sq. to be approximately $93 million annually. The capitalization rate on the sale was estimated at 4.5%.