A deal to sell Woolgate Exchange in the City has collapsed.
Special servicer to the loan, Capita this morning said that following discussions between receivers on the 340,000 sq ft property and Malaysian fund Permodalan Nasional Bhd, a sale could not be concluded.
PNB was to pay £270m – a 5.7% yield for the 25 Basinghall Street, EC2, block.
The receivers are now “considering the optimal options available to them” in regard to the building.
Capita said it would “continue to liase with the receivers and closely monitor their progress while evaluating all other options”.
The sale of Woolgate Exchange had been mooted since D2 failed to repay the £272m loan secured against it following its maturity on 18 July. On 22 July, D2 entered into a standstill agreement with loan servicers until 19 September to investigate options to maximise recovery of the loan.
D2 Private bought the building, which is let principally to German bank WestLB, for £325m – a 5% yield – in 2006. The senior loan was securitised and a £32m junior loan from an Irish lender was syndicated to several banks.
The securitised loan went into default in November last year after the building was revalued at £255m in September.
Jones Lang LaSalle and Knight Frank are selling agents on Woolgate.