RBS office sale nets more than expected

RBS office sale nets more than expected

The Royal Bank of Scotland has successfully sold the freehold of its Aldgate Union office in London for £132 million.

The eight-storey office block was put on the market late last year with a guide price of £85 million, but the price was driven up by demand from commercial and residential developers before the eventual sale to commercial property company Derwent London.

The taxpayer-owned bank appointed advisory firm DTZ last year to sell the office.

Interest in the “prominent property”, located directly opposite Aldgate East underground station, was driven by Aldgate’s late renaissance as a hotspot for financial technology firms in London.

The 225,000 square feet building was originally purchased for £70 million in 2005, and RBS invested a further £85 million refitting it in 2008.

The building will be acquired with vacant possession in December 2015.

Derwent chief executive John Burns said the property would be “quickly re-let on a multi-occupier basis after modest refurbishment”.

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