Spanish billionaire Amancio Ortega’s property company has swooped in with an offer to buy Rio Tinto’s St James’s HQ for around £250m.
Ponte Gadea Group, the real estate arm of Ortega, who is the founder of fashion chain Zara, has entered advanced negotiations with mining giant Rio Tinto to buy 6 St James’s Square, SW1.
However, sources said that a deal was not finalised and other parties including M&G Real Estate had also made offers.
As part of the deal for the 116,000 sq ft West End block, Rio Tinto would have a sale and leaseback agreement allowing it to lease the bulk of the space for its own occupation.
The property was the mining company’s global head office until it moved to Paddington, W2, in 2007. The firm announced last year that it would be relocating. Six St James’s was part of a rebuild redevelopment by Exemplar Properties on behalf of Rio Tinto.
A deal would mark Ponte Gadea’s second trophy office building purchase in London’s West End, after it paid more than £400m for Devonshire House, W1, in December 2013.
Cushman & Wakefield is advising the vendor. All parties declined to comment.
