A China Life and Brookfield joint venture is under offer to buy the Aldgate Tower, E1, for close to £350m, a 4.8% yield.
The pair have agreed terms with Starwood Capital-backed Aldgate Tower Investments, which speculatively developed the 320,000 sq ft building last year.
The imminent deal follows Brookfield’s sale of a majority stake in its 99 Bishopsgate, EC2, office tower to China Life and QIA last year, underlining its strategy to establish deep relationships with the world’s largest investors.
It also reflects the emergence of the eastern City fringe area around Aldgate as an established location in the eyes of global investors.
The 16-storey Aldgate Tower drew several major new occupiers into the area and was particularly popular with technology-oriented businesses. Tenants include Uber, WeWork, Tag Worldwide, Ince and Co, Aecom and the IPO.
Rents in the building average around £50 per sq ft with the best space let at close to £60 per sq ft.
Proceeds from the sale will be reinvested into the development of the neighbouring Beagle House, which has consent for a 350,000 sq ft tech- and media-oriented grade A office development.
The scheme has been rebranded to One Braham and will be marketed by Cushman & Wakefield and GM Real Estate.
Work is now due to start in the second quarter this year and includes a new parade of shops onto the Braham Street Park, which has replaced a former traffic gyratory.
The developers’ confidence to kick-start a second major speculative office development in the area illustrates the transformation of Aldgate.
Other companies making similar moves include Derwent London, which has now completed its purchase of the adjoining Aldgate Union building for £132m and rebranded the development as the Whitechapel building. This will be marketed by Cushman & Wakefield, Hatton Real Estate and BNP Paribas Real Estate.
