London Mayor Boris Johnson could soon have a new landlord as the Kuwaiti government plots a £1.5 billion bid for the More London complex on the banks of the Thames, which includes his City Hall headquarters.
More London is currently owned by the Bahamas-registered London Bridge Holdings, led by Armenian businessman Dikran Izmirlian, which has appointed Rothschild to advise it on a refinancing of the £740 million debt held against the complex, according to the Times.
But a sale to St Martins, the property investment vehicle of the Kuwaiti government, is also being considered in parallel with the refinancing options.
The Kuwaitis already own a swathe of properties in the London Bridge area including the Hays Galleria. St Martins’ portfolio of properties also includes the Willis building in the City and 5 Canada Square at Canary Wharf. Alongside the Greater London Authority, major tenants in the More London complex include PwC, Ernst & Young, Markit and Terra Firma.
The size of the deal, only topped by Blackstone’s £1.7 billion sale of its 50% stake in the Broadgate centres, stunned City investment agents. One said: “The Kuwaitis would be the obvious choice as they used to own the land.”
Other bidders have yet to emerge. Another said: “This is way too big for UK institutions so it will be the sovereign wealth funds and maybe the Chinese.”
