Anthony Lyons and Simon Conway’s Matterhorn Capital is in exclusive talks to buy north London’s O2 retail and leisure scheme for around £100m

The purchase price represents a yield of around 7.5%.

X-Leisure, the leisure fund managed by Hermes and asset managed by Capital & Regional, put the O2 scheme on Finchley Road up for sale last autumn for around £110m – a 6.8% yield.

Matterhorn Capital also holds a 50% stake in Earls Court & Olympia.

It sold a 50% stake in the west London conference venue to Liberty’s Capital & Counties in July 2007.

The O2 is a well-let scheme that includes an eight-screen Vue cinema, an Esporta gym and a Sainsbury’s supermarket, in addition to 10 restaurants and bars.

X-Leisure also hopes to sell leisure scheme Fiveways in Birmingham, which has been on the market for more than six months.

In December X-Leisure suffered a 5.1% decline in the value of its assets to £721m.

Capital & Regional is progressing plans to finalise long-term structural solutions for the X-Leisure fund.

Jones Lang LaSalle is advising X-Leisure.