Kuwaiti property company St Martins is widely tipped by the market to emerge as the frontrunner to buy the asset, but is facing stiff competition from Chinese institution Gingko Tree Investment, German investor Deka Immobilien Investment GmbH, and JP Morgan Asset Management on behalf of an overseas investor, among other parties.
Sixty Holborn Viaduct, also known as Sixty London, is one of the most sought after assets in the Midtown market given the covenant strength of the building’s soon-to-be sole office tenant, Amazon.
The sales process has been mired in secrecy largely at Amazon’s request ever since Jones Lang LaSalle was instructed to find a buyer for the building ‘off market’ almost immediately after the Amazon letting completed in May.
It is thought that a preferred bidder is to be selected imminently, and terms agreed at a net initial yield of slightly below 4.5%, or around £240m.
Online retail giant Amazon completed its deal to establish its new 210,000 sq ft headquarters at Sixty London in May after entering into advanced discussions to take the entire building in February with a rent of £57.50 per sq ft being mooted on the best space on a 10-year lease. Sixty London was the most easterly option Amazon had been considering.
Amazon, which is headquartered in Slough, said the office space will enable it to draw talent from London. It will move 1,600 staff to the building.
All parties declined to comment.
Source: James Buckley, CoStar News