Blackstone abandons plans to offload former FCA HQ in latest blow for Canary Wharf
Private equity firm Blackstone has abandoned plans to sell a 15-storey building in Canary Wharf in the latest signal that confidence in the east London financial district is dwindling.
The world’s largest asset management firm was supposed to sell Cargo at 25 North Colonnade to an Asian investor late last year but the deal has since collapsed, Bloomberg reported.
It is now understood the American giant will hold onto the 15 floor building, which is principally leased to BP, until sentiment in the market improves.
Blackstone bought the tower, located one minute away from the Wharf’s DLR stop, ten years ago from Evan Holdings and Lone Star for £162m.
It was previously home to the Financial Conduct Authority, which swapped the business district for Stratford after a near 20 year stint.
“This is a modernised, fully leased office building and we are not forced sellers,” Blackstone told City PM
Today’s development strengthens fears about commercial real estate values following on from the Covid-19 pandemic and the cost of living crisis.
Earlier this month, 5 Churchill Place, a former office for investment bank Bear Stearns in the area was sold at a 60 per cent discount.
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.