The Irish investor Derek Quinlan has teamed up with Glenn Maud’s PropInvest to buy bought Citigroup’s headquarters in Canary Wharf from Royal Bank of Scotland.

The joint venture has paid £1bn for the 42-storey tower in the financial district at a yield of 4.5%. It comprises 1.2m sq ft of office space. The building is let under a 25 year lease which expires in 2026. There is no break option and standard five year upward only rent reviews.

RBS, which bought the building four years ago, said the yield was below the market average for Canary Wharf and the City of London.

Quinlan, who participated in the deal on a personal basis separate from his private equity business Quinlan Private, said: ‘This is a long-term personal investment in a prime property in the heart of London’s new financial centre. The quality of this asset is matched by the calibre of its long-term tenant, Citigroup, the world’s largest bank.’