An Arab property fund has put pen to paper on a Â£385m deal for a key office building located in Canary Wharf.
The Kuwait Investment Authority will buy 5 Canada Square from property investor Evans Randall.
The building, which is currently home to the Bank of America (BoA) HQ, offers over 500,000 sq ft of prime London office space in the area.
Credit Suisse has a 25 year lease on the building, although it has sublet the BoA ten of the floors.
Under the deal, the investment fund has the option of doubling the height of the site, which would mean the building was able to offer anything up to a potential one million sq ft of office space.
Work on the 14-storey office building was completed in 2003 and Royal Bank of Scotland purchased both 5 Canada Square and 25 Canada Square in a deal worth over Â£1bn from Canary Wharf.
Evans Randall then purchased the building in 2007 from Royal Bank of Scotland for Â£452m, the firm’s largest ever investment in the UK.
The property firm also owns a 50% stake in the Gherkin.
The Kuwait Investment Authority is Â£3bn international property fund and is one of the world’s largest sovereign wealth funds. Working with St Martins, a property investment and asset management company, its property portfolio includes the Willis Building and also 60 Threadneedle Street.
In total, the sovereign fund is estimated to have more than $200bn of assets under management across the globe.
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