Global private equity company Carlyle Group has finally sold its 107 Cheapside development in the City of London following a protracted battle with the Irish purchaser Menolly Investments.
Carlyle said today that the sale of the 184,000 sq ft office development from its Carlyle European Real Estate Partners Fund to Menolly Investments ‘has now completed’.
It follows Menolly dropping its Court of Appeal action following a High Court ruling in Carlyle’s favour that the scheme was practically complete. Menolly agreed to forward purchase the scheme in 2007 and is thought to have agreed to pay around £150m for the scheme.
Menolly will now seek to reactivate its discussions with US law firm Orrick Herrington & Sutcliffe whose plan to take around 80,000 sq ft at the scheme was considered ‘highly unlikely’ to complete a few weeks ago. However City sources say it may potentially be resuscitated following the end of the legal dispute.