Mutua Madrilena pull out of Milton Gate sale

Spanish insurance firm Mutua Madrilena have sensationally pulled out of the deal to purchase Milton Gate from Evans Randall.

We reported a few weeks ago that the firm had agreed a £152 million deal to take on the 200,000 square feet of office space on Moor Lane – a sale which would’ve seen Evans Randall sell the property less than 6 months after acquiring it – but now the insurance giant have pulled out, citing the property was more suitable for trading than for a long-term investment. The Spanish company are believed to still be looking to spend between £80 million and £150 million on a London property, particularly in the West End.

Evans Randall originally bought the EC2 building in June for £127 million from UBS Triton Property Fund. If the sale had completed at £152 million, it would’ve represented a 6.25% yield and the bank would’ve made £25 million profit.

The building is currently let to law firm Addleshaw Goddard until September 2014 at a rate of £49.70 per square foot.

Mutua Inmobiliaria’s General Director Emilio Colomina this week dismissed rumours they would’ve bought the building saying, “”We would never acquire a property in London’s City for that type of yield.”

This is now the second time a deal has failed to close on the property this year. In October German closed-ended fund manager Signa Deutschland attempted to buy the building but had to pull out after failing to secure finance.

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