Investment

Citigroup acquires Canary Wharf tower for $1.3 billion

Canary Wharf tower/Bloomberg

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The suspension is the latest sign of stress in the Southern African nation’s gold industry, which has been hampered by a shortage of foreign exchange.

Sunday 14, April 2019

(Bloomberg) --Citigroup bought a skyscraper that it was renting in London for about GBP 1 billion ($1.3 billion).

Capucine Boncenne, a Spokeswoman for Citigroup, said, “The transaction is part of Citi’s global strategy to own, rather than rent, its major office buildings and cut expenses in the long term.”

Citigroup has been renting all of the space in the 25 Canada Square tower on long leases linked to inflation and sublet most of the building to other tenants. The tower encompasses about 1.2 million square feet, the equivalent of almost 19 soccer fields. Together with the adjoining 33 Canada Square, the building is known as the Citigroup Centre.

AGC bought the building in London’s Docklands financial district for a reported GBP 1 billion in 2013 using a GBP 661 million loan from Bayerische Landesbank.

That loan was refinanced by French lender Societe Generale last year and the building was valued at GBP 1.2 billion pounds by a BNP Paribas unit.

The previous owner of the Canary Wharf Tower, AGC Equity Partners had initially sought at least GBP 1.2 billion.

 

TAGS : Canary Wharf tower, Citigroup, 25 Canada Square, AGC Equity Partners

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