Private equity snaps up Canary Wharf office block in cut-price deal

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A 12-storey tower in Canary Wharf has reportedly been sold for 60 per cent less than its 2017 purchase price.
A 12-storey tower in Canary Wharf has reportedly been sold for 60 per cent less than its 2017 purchase price.

Private equity firm Brookfield has inked a deal to buy a Canary Wharf office block for a slashed price while a fresh work from home order will see offices empty next week.

According to reports in The Sunday Times, the private equity firm has agreed a deal to buy the headquarters of investment firm State Street, from owner M&G.

The deal for the 14-storey building is reportedly for around £250m, with a yield of almost 6 per cent.

It was reported that Brookfield agreed on a deal closer to £300m in March 2020, before the advent of the first lockdown caused talks to dry up.  

The Canadian firm has a 50 per cent stake in the Canary Wharf Group, making it the owner of large parts of the financial district. 

Brookfield has also bought a City office block on 30 Fenchurch St, formerly known as Plantation Place, for £635m.

It comes as office workers have been told to work from home if they can, in fresh plan B measures to prevent the spread of a new Covid variant.