KPF was expected to unveil its redesigned plans for a 100,000m2 office building on the St Alphage House site adjacent to the Barbican in the City of London at the behest of JP Morgan and developer Hammerson.
However, the bank made an announcement to the stock market today stating that it the building it requires ‘could not be accommodated on the site’.
Hammerson chief executive John Richards said: ‘This is a prime site with the potential to carry out a major office development.
‘Hammerson and the City Corporation intend to formalise a joint venture to take forward the redevelopment of the St Alphage site at an appropriate time.’
The Corporation of London, which jointly owns the land with Hammerson, says it is confident it will secure a new tenant for the site.
The City of London's policy and resources chairman Stuart Fraser said: ‘Of course it is disappointing that this particular deal has not gone ahead but we are confident in the site's future as a location for the international financial services industry - which as a whole contributes significantly to the UK economy.’
KPF was unavailable to comment.