A City building that has been empty for three years is to be sold after its holding company went into receivership this week.
Knight Frank has been appointed receiver to Milton Gate Investments and is expected to advise that its single asset, Milton Gate on Moor Lane, EC2, be sold.
It is believed to be the first time that a City building has gone into receivership in the past decade.
Milton Gate Investments is owned by a consortium led by Patrick Despard’s City & West End Investments.
In a deal brokered by City & West End Investments, it bought the 167,000 sq ft building in April 2001 for £80m.
It had been let to accounting firm PricewaterhouseCoopers on a 25-year lease in 1990, but the majority was then sublet to BT.
The building was at the centre of a major legal dispute in 2002, when PwC and BT exercised lease breaks. In August 2003, the high court ruled that PwC was still liable for a £5m penalty owed to the landlord.
Offers of £45m for the vacant building are now likely to be sought by its joint receivers at Knight Frank Peter Welbourn, head of financial services, and Robert Hannington, joint London head of investment.
Knight Frank City investment partner Guy Napier said: “This is an excellent opportunity in what has become lawyer alley.”
Law firms SJ Berwin and Lawrence Graham both considered the building before taking space elsewhere.
References: EGi News 14/03/05
