US private equity firm Starwood Capital has instructed Cushman & Wakefield to sell One Braham, a planned 18-storey office tower in Aldgate, E1, for £65m.
Starwood was in discussions earlier this year to sell its majority stake to venture partner Aldgate Developments. However, the site, which has consent for a 300,000 sq ft tech and media-oriented grade-A office development, is now being advertised to the wider market.
It is understood that Aldgate Developments could still remain invested in the project and bring in a new partner to take the scheme forward.
Starwood and Aldgate delivered the neighbouring Aldgate Tower, E1, which was sold to a China Life and Brookfield joint venture last year for around £350m, a 4.8% yield.
The sale will be seen as a test of confidence in the office market. The Deloitte London Office Crane Survey for winter 2016 reported that new construction activity was down by 42% from the record number of starts recorded in summer 2016. However, total office construction across central London was at an eight-year high with 14.8m sq ft under development, a rise of 4% on the previous six months.
Deloitte’s forecast for new space in central London over the next four years remained at around 38m sq ft.
However, the forecast timing of construction changed, with 3m sq ft of space that had been expected to complete in 2018 shifting into 2019 and 2020.
The slowdown in development activity was put down to uncertainty over the scale of future tenant demand in light of the EU referendum as well as an increase in the volume of space becoming available.
All parties declined to comment.
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