A deal between developer Great Portland Estates and HSH Nordbank to revamp and then sell a London office block that is in receivership has failed due to the euro zone turmoil, two sources familiar with the matter said.
Under the plan, the bank would have contributed the 200,000 sq ft Triton Court block in the City financial district, while Great Portland planned to inject more than 50 million pounds to refurbish the property and lift its value.
It got close to being signed but Great Portland had some increasingly nervous shareholders looking over its shoulder, one of the sources told Reuters.
After the summer and the problems in the euro zone, sentiment everywhere took a turn for the worse.
A second source also said the deal had collapsed.
HSH appointed Savills as the so-called Law of Property Act receiver on the property in June last year, following non-repayment of the loan, which was originally about 100 million pounds, used to buy the property.
The previous owners, Propinvest and Jack Petchey's Incorporated Holdings, bought the building for about 120 million pounds in 2007 and its value has since fallen to about 40 million pounds.
Separately, Propinvest Group Limited, one of the companies in the Propinvest Group, was placed in administration by the Royal Court of Guernsey last week.
Great Portland Estates declined to comment and HSH was unavailable for comment.
(Reporting by Tom Bill; Editing by Chris Wickham and Andrew Macdonald)