* To pay 100 million pound penalty.
* Says agreed with Legal & General to cancel project
MADRID, August 3 Spanish property company
Metrovacesa MVC.MC said on Monday it is pulling out of the
Walbrook property project in London and would pay a 100 million
pound ($165.4 million) penalty.
Metrovacesa said it had reached an agreement with British
insurer Legal & General (LGEN.L) to cancel the Walbrook project,
confirming a report by Reuters late on Friday.
The Spanish company bought the Walbrook project, a prime
property site in London's financial district, from Legal &
General in Sept. 2006.
They had agreed to begin demolishing the buildings in
Walbrook Square before Dec. 2012 to build an office complex, and
had planned to invest around 840 million sterling to 2020.
(Reporting by Paul Day; Editing by Hans Peters)