BT’s circa £210m sale of its London headquarters at 81 Newgate Street to Great Portland Estates is understood to have collapsed.
GPE went under offer on the property earlier this year, after a lengthy process which followed BT’s decision last summer to sell its current 300,000 sq ft home near to St Paul’s and lease space in a more modern building.
However, it is understood due diligence issues came up around refurbishing the property.
The underbidders from the previous sale process have now been asked to bid again.
The 300,000 sq ft BT Centre sits on a 1.5-acre freehold island next to St Paul’s Cathedral. It was built specifically for the company in 1985.
Meanwhile, BT has placed all of the 328,064 sq ft office space available at Aldgate Developments’ One Braham in Whitechapel, E1, under offer.
It is understood the telecoms giant is to take the space on a 15-year lease, paying between £55 and £60 per sq ft.
One Braham is a £230m, 18-storey commercial building being built above Aldgate East Tube station.
BT decided to sell its home last year after revealing plans to cut 13,000 jobs over the next three years and reduce its costs by £1.5bn, and in the wake of the decision by its then chief executive, Gavin Patterson, to step down.
Patterson was replaced in February by Philip Jansen, the former co-chief executive of global payments services group Worldpay.
The business subsequently shortlisted Canary Wharf Group’s Wood Wharf development, the International Quarter London in Stratford (a 50/50 joint venture between Lendlease and London & Continental Railways), YardNine’s 80 Fenchurch Street, EC3, and Aldgate Developments’ One Braham as options for its new location.
BT and GPE have been contacted for comment. Aldgate Developments declined to comment.
Main image © Alex Segre/Shutterstock
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