National Grid has cancelled the £700m sale of its property portfolio because it did not receive high enough bids.

Delancey, AIG and Telereal had been vying for the 2,500 acre brownfield portfolio spread over 500 sites.

But today in a stock exchange announcement National Grid said it had decided that it made more financial sense to withdraw the sale.

Bids not matching value

‘As the process has gone forward, the property and credit markets have deteriorated, and the bids we received do not match the value we are confident that we can extract from the business,’ said Steve Holliday, National Grid chief executive.

‘Thus we have had no hesitation in deciding to retain the business and look forward to continuing with our highly successful track record in remediating and selling on our attractive portfolio of brownfield sites.’

Regeneration specialist St Modwen and house-builder Crest Nicholson had previously been in the running.

DTZ advised National Grid