Link REIT is reportedly in negotiations to buy Morgan Stanley’s European headquarters in London in what would be the trust’s first acquisition in Europe.
According to UK press reports, Link REIT is in talks with US landlord Hines to purchase 25 Cabot Square on Canary Wharf after previous bidder, Blackstone, pulled out of a £390 (€435 mln) offer to buy the asset.
The 17-storey office building was put up for sale in November last year through Knight Frank and Cushman & Wakefield. The £390 mln asking price reflects a 4.75% yield.
Hines acquired the 42,000 m2 complex from Morgan Stanley in 2014 through a sale and leaseback transaction, with Hines having since completed a £70 mln redevelopment of the building. The property generates an annual rent of £18.8 mln per annum, with a weighted average unexpired lease term of around 11 years.
