Private equity real estate firm CIT Group has emerged as the front runner to buy Simon Halabi’s King’s Reach Tower on the Southbank, SE1.
CIT, led by John Barroll Brown, is thought to have bid more than £50m for the 275,000 sq ft tower, and is expected to work up mixed-use redevelopment plans.
The 3-acre site received more than 60 viewings, with residential developer Berkeley thought to be underbidder. Halabi’s Buckingham Securities paid £80m for the former HQ of IPC Media in 2006. Allsop was appointed LPA receiver in November (14 November, p21).
Cushman & Wakefield partner Bill Tyser said: “It has been widely rumoured that the lead bids for the King’s Reach site are residential developers, as they can make the numbers work.
It is probable that CIT, if it is in the frame, is looking at a mixed-use scheme.”
More London developer CIT was reported last year to be collaborating in the UK with a fund manager part-owned by the Saudi royal family.
King’s Reach Tower has consent for a 400,000 sq ft office and retail scheme, designed by Ken Shuttleworth’s MAKE, which expires in 2011.
The separate £929m White Tower portfolio of London offices acquired by Halabi is in administration, with Knight Frank and CB Richard Ellis advising on potential sales.
CBRE is advising CIT. All parties declined to comment.
