Starwood buys City Tower and appoints Cushman & Wakefield
16 Nov, 2009, London
Starwood Capital Group Global L.P. (“Starwood”), the US private investment firm, today confirmed that funds managed by it have completed the purchase of the landmark City Tower building at 40 Basinghall Street, in the heart of the City of London. The building, purchased from PRUPIM, consists of 142,500 sq ft over 21 floors, and it is home to some 40 tenants.
Starwood also confirmed that it has appointed Cushman & Wakefield to act as Leasing Agent and Asset Manager for the building.
Sean Arnold, Head of European Acquisitions for Starwood said “While staying patient and selective, we are starting to see the types of value opportunities that have not existed here for many years. City Tower is a good example: a prominent tower building in a core City location, purchased at a substantial discount to today’s replacement cost and at an attractive initial cash yield, with multiple ways to drive the building’s value as and when the City market recovers.”
Desmond Taljaard, Chief Operating Officer for Starwood in Europe added, “I’m very pleased that Cushman & Wakefield will be working with us to maximise the occupancy and value of this building as we develop our options for the property in the future”.
James Young, head of Cushman & Wakefield’s City Office, commented “We look forward to working with Starwood to help enhance their capital asset value in City Tower and to re-establish the property as one of the leading multi-let tower buildings in central London".
Gresham Down and BH2 acted for Starwood in the purchase of the building, and King Sturge acted for PRUPIM.