Warner Estate Holdings has exchanged contracts to sell a City of London office as it continues to battle to pay down debt.

The company is to sell 60 New Broad Street to fund manager RREEF for £28.6m.

RREEF Spezial Invest, acting on behalf of RVK Europa, will buy the property for £300,000 less than its September 2011 book value.

Warner said the £27.8m raised by the sale will be used to pay down debt.

It has around £220m of debt with Royal Bank of Scotland that mature this year. The loans are now being managed by Blackstone and Warner said in a statement that it is “reliant on the support of its lenders”.

Warner has also recently warned that a resolution to its debt woes is likely to return little or no value to shareholders.