Canary Wharf Group has agreed to sell its long leasehold interests in 5 Churchill Place for £208m to a limited patnership owned and controlled by a Middle Eastern private investor based in Bermuda.
The recently completed building was designed by HOK International and comprises 314,000sq ft of office accommodation arranged over twelve office floors.
The majority of 5 Churchill Place - 10 floors of 262,000 sq ft of space - is let to JP Morgan Markets, following its takeover of Bear Stearns which was to occupy the building, for a term of 20 years from 11 August 2009 at an annual rent of £10.61m or £40.50/sq ft.
The rent has a collar of £44.50/sq ft and £49.50/sq ft at the first review in 2014.
Canary Wharf Group is providing rent cover for the two currently unlet floors, which total 52,000sq ft of space, at £2.16m a year for a maximum period of 5 years.
Canary Wharf Group said that following the sales by Credit Suisse of its 20 Columbus Courtyard building and HSBC of its building at 8 Canada Square, "the disposal reflects the continued interest for investment in assets on the Canary Wharf estate for high quality and highly specified properties let to strong tenants".
It said that the disposal was consistent with the objectives of Canary Wharf Group "which include active management of its real estate portfolio and the realisation of value through sales and or refinancings of certain buildings whilst controlling key aspects of the Canary Wharf Estate.”