Starwood confirms purchase of City Tower in London

LONDON: Private US investment firm Starwood Capital Group Global L P said funds it manages have been used to purchase City Tower building at 40 Basinghall Street in central London from Prudential Property Investment Management.

City Tower, a landmark building, consists of 142,500 sq ft over 21 floors and houses 40 tenants. The investment firm also confirmed that it appointed global property consultants Cushman & Wakefield as Leasing Agent and Asset Manager for the building.

“While staying patient and selective, we are starting to see the types of value opportunities that have not existed here for many years,” said Starwood head of European acquisitions Sean Arnold.

“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.”