London-based private equity firm True Capital has withdrawn from purchasing Borough Yards, SE1, from European real estate investment manager Mark.
True Capital was set to pay £132m but later reduced its offer to £115m. However, Mark was unwilling to sell for less than £120m.
The firm, which holds a 125-year lease on the 197,800 sq ft development, had instructed Cushman & Wakefield and Knight Frank to sell the asset for £135m, reflecting a net initial yield of nearly 5.4%.
The company holds Borough Yards in one of its historic funds, which invests in a range of asset classes. However, it is now pivoting to sector-specific funds, such as Crossbay, its series of funds focused on investing in urban logistics.
Borough Yards is comprised of a mix of leisure, office and retail spaces, including 115,600 sq ft of retail and leisure areas.
The site also houses more than 50 retail units beneath the arches of London Bridge and an Everyman cinema.
Mark acquired the site in 2016 and redeveloped it into the £300m Borough Yards project, launched in spring 2022.
In 2023, Cheyne Capital Management provided a £122.8m loan to refinance the development.
