UBS Client Drops $330 Million Bid for Lloyds Bank London Office

UBS Group AG pulled out of a deal to purchase an office building in the City of London financial district on behalf of a client.

UBS’s asset management arm had been in talks to buy the building leased to Lloyds Banking Group Plc on Old Broad Street, according to two people familiar with the plan. It had agreed to pay about 250 million pounds ($330 million) for the property in late 2015, the people said, asking not to be identified because the details are private.

A spokeswoman for UBS Asset Management confirmed the sale has been dropped and declined to identify their client and the price. A representative for vendor Evans Randall Investors declined to comment.

City of London office property sales fell 18 percent to 4.8 billion pounds from January through July, according to an August report from broker Savills Plc. Values in the district fell 6.1 percent in July, the most in at least seven years, after Britain voted to leave the European Union, according to broker CBRE Group Inc.

The collapse of the sale was related to the structure of the company which holds the property and not the Brexit vote, two people familiar with the matter said. The building, about 300 meters from the Bank of England, was the headquarters of HBOS Plc prior to its 2009 acquisition by Lloyds.

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