City of London’s Tower 42 skyscraper put on the market

The tallest occupied building in the City of London, Tower 42, is being sold by its owners Hermes Real Estate and BlackRock’s UK property fund.

The 600ft tower, which was formerly known as the Natwest tower, is expected to fetch as much as £300 million as a result of huge price increases in London’s commercial real estate market.

This price increase reflects the shortage of properties for sale in the Square Mile and the increasing appetite among companies for 'trophy' properties as the economic slump comes to an end.

BlackRock's managing director Marcus Sperber explained the timing behind the decision to sell: "With significant global demand now focused upon central London offices driven by expectation of future returns, combined with a dearth of trophy assets on the market and weak sterling, the partners believe that the timing is right to market the asset."

The tower itself was built in 1980 for Natwest but is now home to a number of companies, generating £20 million in rental income each year. The sale is expected to include five other low-rise buildings next to the tower, which makes it among the largest freehold sites available in the City.

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