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Investing.com -- The owner of the iconic "Can of Ham" building in London has turned down a higher bid from Blackstone (NYSE:BX), amounting to approximately £330 million ($426.92 million), according to Reuters, citing a source familiar with the situation. The source, who requested anonymity due to the confidential nature of the information, revealed that Nuveen, the property’s owner, is banking on an increased interest in European real estate assets.
Located at 70 St Mary’s Axe, the 21-storey "Can of Ham" is among the few major office properties in Europe that have been listed for sale in recent years. The European market has been impacted by changing work patterns following the pandemic and increased borrowing costs.
The sale of the "Can of Ham" is being monitored as a measure of whether buyers and sellers can reach a consensus on pricing, following a significant drop in office sale volumes last year, the lowest since 2009.
Negotiations between Blackstone and Nuveen regarding the tower recently reached a stalemate over the price. Blackstone had previously made an offer of £300 million for the building, which was rejected last year.
The source also revealed that Blackstone’s latest offer surpassed the £322 million price tag that Nuveen had set when it listed the tower for sale last year. However, Nuveen has since raised its expectations, encouraged by strong leasing activity in London and the return of cash to European assets in general.
Nuveen is seeking a higher price and may opt to retain the building to observe how market conditions evolve. It had previously attempted to sell the building for approximately £400 million in 2022.
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