British Land has called off its £1.7 billion sale of the Meadowhall shopping centre in Sheffield, largely because of the credit crunch.
The property giant had been expected to complete the deal this autumn, but it has been shelved as a result of the crisis in debt markets. The sale was not helped by severe flooding of the landmark shopping destination this summer, when it had to close for several days.
British Land chief executive Stephen Hester first talked about the potential sale of Meadowhall in April and started marketing the site in May, according to The Times. The company had hoped that investors would buy a 75 per cent stake in Meadowhall for about£1.2 billion. It first valued the site at£1.7 billion.
British Land said: “Despite a range of investor interest, the uncertainty in financial markets had made the prospect of realising an appropriate value unlikely at the present time.”
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