New Star is in talks to sell its headquarters, 60 Gracechurch Street in the City of London, to a private equity house. Sunday Telegraph

Just 14 months after buying the bank’s London headquarters for £145m, New Star is in talks to sell it to Evans Randall according to well-placed sources. The price could be as low as £125m, they say.

The news comes just weeks after New Star issued a profits warning and admitted that many of its funds were underperforming.

A sale of 60 Gracechurch Street, the largest and arguably the highest-quality asset in New Star’s fund, would represent a major U-turn for New Star, which had been one of the biggest buyers of commercial property until the market turned last summer.