Lloyds Chambers in the City of London has attracted a £100m off-market bid, which has been rejected the new Chinese co-owners.
Last year, Fosun Property Holdings of Shanghai acquired Lloyds Chambers for £64.5m. When the deal was completed in October, there was speculation that the overseas investors had overpaid for the E1 office rental.
Lloyd’s Chambers was built in the 1980s and the AON lease generates £7.1m in rental income, which equates to £36.61 / sq ft. Although, Aon is renting the entire property, the US insurance company only has four years left on its lease and has already begun vacating the building.
With vacant possession looming investors such as Aeriance Investments have presented speculative bids to buy the Minories office building. Only a few months after the sale, the building has attracted a premium offer that would net Fosun a quick £35m profit.
Fosun and the co-owners seriously considered the £100m bid and placed the building under offer. However, they have now decided to explore their own plans to redevelop the site and add further office space or alternatively to convert the building into residential accommodation.
Meanwhile, Aon is proceeding with plans to consolidate its London staff within a new global headquarters on Leadenhall Street. The Leadenhall Building has been designed by Sir Richard Rogers and his practice, and is informally known as ‘The Cheesegrater’.