Citigroup headquarters sold for $2.01 billion

Citigroup's European headquarters in London has been sold to a consortium led by an Irish private-equity company for 1.0 billion pounds (1.48 billion euros, 2.01 billion dollars), the buyers said Monday.
The sale of the building, owned by Royal Bank of Scotland but leased to US banking giant Citigroup, is the second largest single-property transaction seen in Britain. The biggest such deal occurred in April, after the HSBC banking group sold its global headquarters in London for 1.09 billion pounds.
Both transactions are for the sale of skyscrapers in Canary Wharf, London's modern financial district to the east of the centre. Quinlan Private, an international private equity and real estate group formed by financier Derek Quinlan, has bought 25 Canada Square with the help of the private property company, Propinvest, a joint statement said.
"This is a long-term personal investment in a prime property in the heart of London's new financial centre," Derek Quinlan said. "The quality of this asset is matched by the calibre of its long-term tenant, Citigroup, the world's largest bank." The property is a 42-storey landmark tower, let to Citigroup under a 25-year lease, which is due to expire in 2026.
The banking giant will pay annual rent totalling 46.5 million pounds to the new owners. Royal Bank of Scotland bought the tower in 2003 for about 690 million pounds. It measures 1.223 million square feet (113,665 square metres) and has basement car parking for 219 vehicles.