Investment firm Franklin Templeton had to pull out of a £38m deal to buy an Edinburgh shopping centre after failing to raise bank debt, reflecting growing concern among lenders about the retail industry.
Sources said Franklin Templeton had agreed to buy the Cameron Toll centre from Oaktree Capital, but three banks refused to lend.
Retail insolvencies and store closures have spooked banks and sapped investor demand for properties, particularly in suburban shopping centres such as Cameron Toll, which changed hands for £84.5m in 2005.
A bid for shopping centre owner Intu fell apart in November after a consortium failed to raise funding. Under Takeover Panel rules, it can bid again at the end of this month. Buyout firm Orion Capital Managers last week raised its stake in Intu to 6%.
Source: The Times