Out and up

2 July 2007 By Una Galani Follow @ugalani

It follows in the footsteps of HSBC which recently sold its own London offices. Prices are high, yet the market shows few signs of slowing. RBS has sold the Docklands Citigroup tower for £1bn in the UK s secondlargest single property deal at a rental yield of just 4.5%.

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Royal Bank of Scotland has sold the European headquarters of Citigroup at Canary Wharf for £1bn to a consortium led by Irish financier Derek Quinlan. The Citigroup tower receives rent of £46.5m a year, representing an initial yield of 4.5%. The deal is the second largest UK singleproperty transaction after the April sale of HSBC to Spain's Metrovacesa for £1.1bn.

Availability of high quality commercial property in London fell by 1m sq ft in the first quarter to just over 11m sq ft pushing the average vacancy rate beneath 3.6% the lowest level since mid2001 according to property consultants CB Richard Ellis. Meanwhile, Central London rents have increased nearly 5% in the first quarter, taking yearonyear growth to 17.5%.

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