City Tower is a 20-story, 133,000-square-foot office just south of London Wall. The building is leased to 30 tenants, and is 16% vacant, with an average rent of $38.24 per square foot.
Great Portland purchased City Place House from Episo CPH LP, an entity of European Property Investors Special Opportunities LP, a property investment fund co-managed by AEW Europe and Tristan Capital Partners. Prupim and Cleary Gottlieb are two of the tenants of the 177,000-square-foot office, which is 100% leased to seven companies. The average lease is $57.97 per square foot, according to a statement by Great Portland, with a current annual rental income of $8.8 million. "Our intention is to refurbish the common parts and floors as appropriate, repositioning the building into a potential shortage of grade A space in the city from 2011," said a company spokesman.
The firm will asset manage the joint venture and will pursue a wide variety of value enhancing options, according to a Great Portland statement, ranging from short-term asset management to longer term, comprehensive redevelopment. It is likely that non-recourse debt financing will be arranged for the JV, according to the statement.
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