Bids for one of the Royal Bank of Scotland’s office buildings in Aldgate have entered a second round, with the taxpayer-owned lender set to gain a better-than-expected payout.
The bank appointed advisory firm DTZ at the end of last year to sell Aldgate Union on Whitechapel High Street, with a guide price of around £85m.
However, City A.M. understands that offers for the building have reached £110m due to strong demand from investors seeking to convert it into flats. It is unclear who the bidders are.
London’s thriving tech sector has led to a resurgence in building activity to the east of the city, with developers scrambling to cash in on the demand for both office and residential space.
Aldgate in particular has become a hotspot for financial technology (fintech) firms.
The Royal Bank of Scotland bought the 225,000 square feet building in 2005 for £70m and spent around £85m refitting it in 2008. It plans to halve its London portfolio to around 1m square feet as it consolidates its operations. Its buildings include 250 Bishopsgate, which it inherited from its purchase of ABN Amro, and 135 Bishopsgate.
DTZ declined to comment.