An end to the saga over the torturous sale of the Walbrook Square site in the City of London was agreed last night after Legal & General and Metrovacesa signed a new contract with an extended payment schedule.
The troubled Spanish company has agreed to pay L&G £240m in full for the island site on Queen Victoria Street by October 2010.
It will be paid in quarterly amounts but it is understood that the majority of the money is only due to be paid in the later stages of the new payment schedule. However Metrovacesa has today paid L&G £42m.
It paid a £12m deposit when it agreed to buy the site last July on the cusp of the credit crunch.
The original payment deadline was in May this year and had already been extended to the end of last month.
It is hoped the new deal will end the protracted wranglings between the two parties who have already been to court this year to settle other differences over the contract.
It is thought that the Spanish company will now seek to redesign the scheme.
CB Richard Ellis advised metrovacesa and Jones Lang LaSalle advised L&G.
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