A Singapore-based investor has declined to exercise an option to buy a 20% stake in the City of London’s Aviva Tower, earmarked for replacement by Eric Parry’s 1 Undershaft – the Square Mile’s tallest consented building.

Parry secured planning for the 305m tall office block in November 2016 on behalf of Aroland Holdings. Shortly afterwards, Perennial Real Estate Holdings entered into a call option agreement to buy 20% of the Aviva Tower – designed by GMW Partnership – which would be demolished to make way for 1 Undershaft.

But Perennial chose not to exercise its right to buy the stake in the development site ahead of the option’s expiry last week, citing concerns over the timescale of the redevelopment. The option was based on a valuation of £330m for the whole building and its freehold.

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