The £300m sale of a flagship office building in the City has collapsed.
New York-listed investor Boston Properties has walked away from its acquisition of Goldman Sachs’ headquarters on Fleet Street, EC4.
The group, run by billionaire New York Daily News owner Mort Zuckerman, offered close to the £300m asking price for Peterborough Court and Daniel House in June.
The 370,000 sq ft campus, let to Goldman Sachs until 2026, was put up for sale through Jones Lang LaSalle at the start of the year.
The agent is now understood to have approached underbidders for the asset.
Joseph Lau’s Chinese Estates had been tipped as a top contender for Peterborough Court and had openly confirmed its interest in the building.
The group made its first investment in the UK in February, buying Goldman Sachs’ 480,000 sq ft River Court office, also on Fleet Street, for £280m.
While the group is understood still to be keen to buy Peterborough Court, sources said it had become frustrated at the “to-ings and fro-ings” over the sale and was unlikely to resubmit an offer close to its original bid.
The HQ is likely to continue to attract strong interest, however, as the market remains starved of quality, large lot assets.
Peterborough Court and Daniel House, which have been the US investment bank’s home for almost 20 years, were placed into receivership in September last year after their owner, Antedon, defaulted on a loan. The campus was bought for Antedon by Jesta Capital for £355m – a 5% yield – in 2007.
james.buckley@estatesgazette.com
