An office in Canary Wharf has been sold for a 60% discount to its list price as commercial property in London suffers and investment banks cut back on staff.
The building, 5 Churchill Place was put up for sale last year when the owner, China’s Cheung Kei Group, defaulted on loans backed by the property.
Menomadin Group, the vehicle of Israeli tycoon Haim Taib, has agreed to buy the building for £110m, according to React News.
Cheung Kei paid £270m in 2017 having previously bought 20 Canada Square, another Canary Wharf site.
Vacancy rates for offices in the docklands are now running at 16% with many tenants now routinely announcing either staff cuts or moves to smaller premises.
UBS today said it was considering more job cuts to save cash following its merger with Swiss rival Credit Suisse, which has thousands of staff based at Canary Wharf.
Citigroup, Deutsche Bank and CMC Markets have all announced substantial job cuts in recent weeks, which is likely to have a knock-on effect on demand for office space in the City and Canary Wharf.