Tower 42 put up for sale for by PE owners

CITY landmark Tower 42, an icon of the London skyline since it was completed in 1980, has been put up for sale, with its private equity owners hoping to get £290m for the building on Bishopsgate.

BlackRock UK Property Fund and LaSalle Investment Management yesterday announced they were looking for buyers of their freehold in the Tower 42 estate, which includes five other commercial buildings around Old Broad Street.

“With limited supply and increasing demand exerting upward pressure on rents in the City market, investors can anticipate strong returns and considerable long term growth potential,” said BlackRock managing director Jeff Morton.

The flagship tower, which stands over 600 feet tall, was built between 1971 and 1980 as the new headquarters for NatWest bank, and cost around £70m to build at the time.

It was previously put on the market last year with a target price of £300m by BlackRock and LaSalle. Despite more than 40 serious viewings, reported to include property tycoon Gerald Ronson, the owners decided to hold out for a higher offer.