Shelbourne Development Limited has announced that it will not be proceeding with the purchase of the Lloyd's Building in London.
Shelbourne Development entered into negotiations over 6 months ago with Deka, a German company which bought the building from Lloyds in 1996.
The Lloyd's Building is a landmark commercial building in and is the home of the Llyod's insurance organisation.
This announcement follows the discovery of Alkali Silica Reaction (ASR) in samples of concrete from the building. ASR is a chemical process whereby concrete becomes brittle and decays at a rate that is faster than normal.
Two months ago an engineering company was commissioned to test the building for ASR. When ASR was identified, Ove Arup, the engineers who designed the building, said that remedial action would result in ASR not being "an issue."
Nevertheless, Shelbourne is to withdraw from the deal since it feels that the building is a less attractive investment than previously.
