The property market’s standoff between buyers and sellers has claimed another high-profile casualty as Blackstone’s £300 million bid to acquire London’s distinctive “Can of Ham” skyscraper collapses. The deal’s failure underscores the persistent gap between vendor expectations and buyer valuations in the current market climate.
The world’s largest commercial real estate investor had entered exclusive negotiations to purchase the building at just above £300 million. However, the seller, Nuveen, stood firm on its £322 million asking price, leading to an impasse. This failed transaction would have marked London’s largest office deal in two years.
The building, officially known as 70 St Mary Axe, represents prime real estate with its fully-let status and prestigious tenant roster including Sidley Austin, National Bank of Canada, and Samsung Electronics. Nuveen, which developed the 21-storey tower in 2019, had previously attempted to sell the property in 2022 for approximately £400 million.
London’s office market has struggled with vacancy rates reaching a 20-year peak of around 10 per cent, according to CoStar data. The post-pandemic shift towards hybrid working has created a two-tier market, with modern, well-equipped buildings maintaining their appeal while older properties struggle to attract tenants.
Investment in London offices during the first nine months of the year has plunged to its lowest level since 2003, as reported by MSCI. The market’s liquidity remains constrained by the significant disparity between buyer and seller price expectations, suggesting a continued period of limited transaction activity lies ahead.
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