A 12-storey tower in Canary Wharf has reportedly been sold for 60 per cent less than its 2017 purchase price.
5 Churchill Place, a former office for investment bank Bear Stearns, was placed into receivership by a syndicate of lenders last year and its Chinese owners Cheung Kei Group, put the building on the market.
The building was bought for close to £300m by the Asian property developer back in 2017.
However, a report in React News said Menomadin Group, the business owned by Israeli entrepreneur Haim Taib, has agreed to buy the building for £110m.
City A.M. has contacted Menomadin Group for a comment.
Today’s development strengthens fears about commercial real estate values following on from the COVID-19 pandemic and the cost of living crisis.
The deal marks one of the largest distressed commercial property sales in London so far and could be a sign of things to come for the east London business district. 5 Churchill Place is just one of three buildings in the region likely to be sold.
20 Canada Square, is also due to be sold by receivers while Blackstone is marketing the former home of the Financial Conduct Authority. The investment giant paid £165m for the building in 2014.
The east London banking district was also dealt a blow last year when HSBC announced it would not renew its lease which expires in 2027 at its landmark tower in the region.