Kaupthing is progressing its plans to sell or bring in a partner for its Noho Square scheme in central London.
It is thought Kaupthing would like a deal agreed by the end of the year.
The guide price for the entire site is between £100m and £120m. However, bidders are valuing the site at between £50m and £80m.
A joint venture arrangement or outright owner could undertake a redesign of the scheme.
The design, which won planning permission last year, comprises 891,000 sq ft of mixed-use space on the former Middlesex Hospital site.
Kaupthing assumed full control of Noho Square when Christian Candy’s CPC, its former joint venture partner, swapped its equity stake in the London scheme for Kaupthing’s stake in a residential development in a Beverly Hills project last month.
Kaupthing plans to sell all its real estate equity stakes following the bank’s nationalisation. It is focusing on completing the Noho Square deal and, over the next three years, will sell stakes in Napier Park in Luton with Explore Investments, Laing O’Rourke’s property arm, and two projects in India.