Kier’s £150m deal to buy an 80% stake in rival developer Helios Properties has fallen through.

Helios director Mike Hughes confirmed that the deal, which was agreed in July, will no longer go ahead and added: ‘It's fair to say that in recent weeks we have felt ourselves moving increasingly in a different direction to Kier’s proposal. There is no animosity whatsoever.'

Jones Lang LaSalle Corporate Finance team was advising on the sale, after Helios, which is led by Mike Hughes and Trevor Cartner, approached the company back in April to consider how it could finance its international expansion.

The move followed months of consolidation in the big shed sector, including Goodman’s purchase of Rosemound for £336m and Prologis’s purchase of the UK industrial arm of Parkridge for £298m.

Jones Lang Lasalle Corporate Finance, led by Tony Edgely and Chris Jolly, advised Helios that selling a stake was an option and Kier duly won the bidding war in July to buy the 80% stake for £150m. The developer beat off competition from other parties, including AMB and CalEast.

However, the deal has been the subject of rife speculation as it appeared to stall over the slow summer period. It is thought that the deal could well be another high-profile casualty of the credit crunch.

The rumours went into overdrive after last week’s news that Helios had set up a joint venture with US pension fund manager CalEast to invest €1bn (£692m) in Europe (PW, 12.10.07).

Kier were unavailable for comment.