Blackstone has withdrawn one of the largest City of London properties on the market shortly after calling for bids.
The private equity giant is no longer seeking to find a buyer for the Devonshire Square Estate, EC2, which was being marketed by CBRE and Eastdil Secured for £550m.
The decision to abort the sale came after several investors had already submitted bids.
Instead, Blackstone has opted to continue with its asset management of the 630,000 sq ft estate.
Around 200,000 sq ft is currently vacant across the 13 buildings at Devonshire Square, principally as a result of Aon’s 190,000 sq ft move to the Leadenhall Building, EC3, earlier this year.
Blackstone has already undertaken substantial asset management and repositioning of the estate, notably securing a 50,000 sq ft private members’ club, which has significantly enhanced its value.
Blackstone acquired the Devonshire Square Estate for £330m from Rockpoint and the Abu Dhabi Investment Authority in 2012.
A sale agreed at the asking price would have reflected a premium to its original purchase price of close to 70%.
