St Kaths a tough sell for Taywood

BIG buyers are snubbing attempts by Taylor Woodrow to sell its St Katharine's Docks Estate.

Taylor Woodrow, which wants to focus on house-building, formally put the waterside development up for sale last week. It is thought to want at least £200m.

But German property funds and Middle East investors - recently the most prolific office property buyers in the capital - find it too risky.

One adviser close to several large European funds said: 'The Germans won't go near it. The office component has lots of short leases with plenty of break clauses and a lack of blue-chip tenants.'

Another property source said venture capital funds could be attracted by the high yield on the site, but 'the short leases make it tricky for any financial buyer to borrow the level of cheap debt needed to turn a quick profit'.

A Taylor Woodrow spokesman said approaches and initial talks last year had not gone far.

Private developer Hilstone Estates and publicly quoted Rugby Estates were reportedly in talks until early this year.

The property includes offices, shops and luxury apartments and an office development pre-let to actuary William Mercer.