Nuveen, the asset management arm of US retirement provider TIAA, has hoisted a for sale sign over the “Can of Ham” skyscraper in the City of London seeking £322.3 million.
The group joins Brookfield in coming forward to test the market with a big City office sale in recent weeks, following a year when there have been few £100 million-plus transactions.
Cushman & Wakefield and Newmark have been appointed to sell the building at 70 St Mary Axe, with the price attached reflecting a net initial yield of 6% and capital value of £1,095 per square feet. The building, which has been nicknamed the "can of ham" because of its distinctive tinned-ham shape, offers 360-degree natural light and views of the City. Nuveen was the developer of the 315,639-square-foot 21-storey tower, near Liverpool Street station, completed in 2019.
The development site was bought from Targetfollow in 2010 for the Cityhold Office Partnership, a €2.2 billion pan-European office joint venture vehicle between US pension giant TIAA and Sweden’s AP1 & AP2 pension plans. The partnership is managed by TIAA’s fund management arm Nuveen.
CoStar News revealed in January 2020 that Nuveen Real Estate had recapitalised the TIAA General Account’s interest in the Cityhold Office Partnership, with TIAA selling down half of its initial 50% interest in the venture to CBRE GIP, representing a value of €625 million (£529 million). It previously tried to sell the building in 2022 for around £400 million.
“We now think it is time to go test the market again,” said Nick Deacon, head of offices for Europe at Nuveen Real Estate to the Financial Times, which first revealed the sales process. “We see core capital starting to return to London.”
The building is fully let to 13 tenants, with a weighted average lease length of 8.8 years. Tenants include law firm Sidley Austin, National Bank of Canada, AIB and Samsung Electronics.
Cushman & Wakefield reported in an interview with CoStar News that there was an increase in buildings going under offer in central London, despite a year when just two City offices have exchanged for in excess of £100 million. As of 1 June, £700 million was under offer across central London but as of 10 September there is £1.54 billion under offer, Cushman reports. The figures have more than doubled over three months.
The West End has seen liquidity return fastest, with the City following.
Cushman reported that of the sales that launched in the third quarter so far, of circa £1.1 billion there is a swing to the City, skewed by Brookfield bringing out Citypoint Tower. for £500 million. Of the £815 million that has gone under offer in the third quarter, July saw most activity.