Brookfield is in exclusive negotiations to sell London’s CityPoint office tower, signalling renewed private equity interest in UK commercial real estate following a prolonged market downturn, says Bloomberg.

Castleforge is reportedly in discussions to acquire the 36-storey building for about £455m, or approximately $625m. The price would broadly match the outstanding debt secured against the property, which includes commercial mortgage-backed securities and a junior loan.

CityPoint has been closely watched by investors after a failed sale attempt and multiple loan restructurings following the rise in interest rates in 2022. Brookfield originally gained control of the asset in 2016 and later refinanced it before values fell sharply amid tenant departures and sustainability upgrade costs.

A successful sale would rank among the largest London office transactions since the correction began and could indicate improving sentiment for well-located, income-producing assets as supply tightens and rents for prime space rise.

Brookfield and Castleforge declined to comment on the talks.

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