LaSalle Investment Management is under offer to buy the City of London headquarters of ING for £197.5m from Deutsche Fonds Holding.
The fund manager, on behalf of a US client, has secured exclusivity on 60 London Wall, EC2, with the deal expected to exchange later this week.
It is expected to pursue a substantial refurbishment and two-floor extension of the 260,000 sq ft building, which will be vacated by ING in favour of 8-10 Moorgate, EC2, later this year. However, it has not ruled out alternative options, which include a wholesale redevelopment.
The sale price represents a significant premium to the £180m guided by agents CBRE and JLL, reflecting the weight of capital chasing value-add opportunities in the supply-constrained City market.
Heavyweight investors and developers including Lipton Rodgers, Stanhope and Mitsui are among those to have submitted bids.
A redevelopment of the building could increase its floor space to as much as 440,000 sq ft.
However, a refurbishment scheme – with an extension of two or more floors – is considered more attractive given it would be both substantially quicker and cheaper.
German fund manager Deutshce acquired the building via its takeover of IVG’s private funds management business last year.
LaSalle and DFH declined to comment.
