CGI has pulled the plug on Grosvenors plans for a £150m City office development.
The Duke of Westminster’s property company last year agreed a funding deal with CGI to buy 35 Basinghall Street, EC2, for around £30m from Pillar.
The building, held in Pillar’s CLOUT partnership with Schroders, has planning permission for a 130,000 sq ft (12,100 sq m) scheme, but it has emerged that Grosvenor and CGI were set to buy the adjoining 16 Coleman Street for around £20m and work up plans for a 180,000 sq ft (16,700 sq m) scheme.
However, CGI is believed to have pulled out of any speculative funding deals, opting for only cash-flow deals.
A spokesman for Grosvenor said: “The decision was a function of very difficult global and domestic market conditions.”
Sources said CGI had also withdrawn its funding proposal with Patrick Despard’s City & West End for the 75,000 sq ft (7,000 sq m) redevelopment of the Crown Estate’s Chesham House, 20 Warwick Street, W1.
It meant C&WE did not make the Crown’s shortlist this week of Benchmark, Grosvenor and Development Securities to become development partner.
The preferred bidder will acquire the long leasehold interest in the 71,000 sq ft (6,600 sq m) office element.
All the 33,000 sq ft (3,000 sq m) retail space will remain under the Crown’s control.
EGi News 18/01/03
