CSFB HQ at Canary Wharf in London Sold for £452

Property Week - July 27, 2007

Evans Randall has bought the freehold of 5 Canada Square in Canary Wharf from the Royal Bank of Scotland for £452m its largest UK investment. The Mayfair-based private investment bank and private equity company bought the 14-storey 515,000 sq ft building, constructed in 2002, at an initial yield of around 4.4%.

The property is let to Credit Suisse International on a 25-year lease ending in October 2027. Ten of the 14 floors are sublet to Bank of America. Annual rent of £19.7m equates to around £38/sq ft. Evans Randall, which owns a 50% stake in 30 St Mary Axe, said the next rent review is in October and, with £47/sq ft achieved in similar buildings, the investment is highly reversionary.

Michael Evans, chairman and chief executive of Evans Randall, said: ‘As the single-largest investment we have made in the UK real estate market, 5 Canada Square fits perfectly with our strategy of acquiring trophy buildings in Europe’s main financial centres at rentals that have significant reversionary value.’

Bank of Scotland Corporate Banking provided debt. CB Richard Ellis advised Evans Randall; Lazards acted for the Royal Bank of Scotland. Sphere: Related Content