Citigroup Is in Talks With Owner of Its Canary Wharf Tower

(Bloomberg) -- Citigroup Inc. is in talks with a Middle East-backed private-equity group to buy a tower it leases in London’s Canary Wharf financial district, according to a person with knowledge of the matter.

The U.S. bank is negotiating to buy the 25 Canada Square building from AGC Equity Partners Ltd., the person said, asking not to be identified because a deal has yet to be struck. Bloomberg reported in October that the skyscraper’s owner was considering a sale for more than 1.2 billion pounds ($1.6 billion).

London’s office market has remained buoyant despite the country’s broader economic slowdown in the run-up to Brexit next month. A lack of supply combined with the weak pound has continued to support prices.

If the transaction goes through, Citigroup would relocate the staff it has operating in the neighboring 33 Canada Square when the lease expires and move them into number 25, the person said. The Financial Times reported the Citigroup-AGC talks earlier.

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