A delay in Gaw Capital Partners’ purchase of Goldman Sachs’ European headquarters on Fleet Street, EC4, has led to papers being pulled on the deal.
Landesbank, the main lender on the Peterborough and Daniel House Peterborough Court complex, is believed to have ended discussions to sell the assets to Gaw’s US affiliate Downtown Properties nearly two months after placing it under offer.
Los Angeles-based subsidiary Downtown Properties agreed a deal in January to buy the 370,000 sq ft campus for close to £300m, reflecting a yield of around 5.75%.
Gaw was fronting the purchase for a syndicate of Korean investors, each requiring board approval before committing to the purchase. This led to delays raising the required equity in an acceptable timeframe, prompting the seller to terminate the deal.
Up to four investors have been waiting in the wings to buy Peterborough Court since it went under offer, and the asset is now back under offer to another party.
Many in the market have voiced frustration at the Korean investment model which, as a result of syndicating deals with numerous investors, can lead to protracted negotiations.
In March last year, a syndicate of four Korean investors, including Samsung Fire & Marine, went under offer to buy 10 Aldermanbury Square, EC2, for £262m, but at least one of the parties failed to get board approval.
Knight Frank partner, Stephen Clifton, said: “As a covenant, Goldmans is one of the best known and sought after internationally. At the right level it will sell and the buyer will be Far Eastern.”
Jones Lang LaSalle is advising on the sale of Peterborough; DTZ acts for Gaw. All parties declined to comment.
james.buckley@estatesgazette.com
