CIT Group is under offer to buy a major refurbishment opportunity close to London’s booming Silicon Roundabout for around £107m.
The private equity investor, which has strong relationships with Middle Eastern clients, has agreed terms to buy the Finsbury Tower at 103-105 Bunhill Row, EC1, from Hermes Investment Management.
The sale of the tower, which was on the market via Michael Elliot for £100m, will crystalise a significant return for Hermes.
It bought the building in 2013 for £67.3m in an off market deal from Middle Eastern owner HNS Group.
The skyrocketing value reflects the depth of demand for development opportunities around Old Street which is popular with tech and creative occupiers and has seen rapid rental growth due to the lack of available office space in the area.
The 15-storey tower totals 178,079 sq ft, including 152,284 sq ft of offices.
Just over 80,000 sq ft of the offices are vacant, with all but two floors coming vacant by May 2016. Full vacant possession can be achieved on the upper floors in 2017.
The building has the potential for a major office-led refurbishment but could also be converted to residential and hotel use, according to the sales literature prepared by Michael Elliot.
CIT has a strong track record in both commercial and residential development and is on site at the mixed use Southbank tower scheme which it forward sold to Hermes and joint venture partner Canada Pension Plan Investment Board last year.
Strutt & Parker is advising CIT.
All parties declined to comment.
