LONDON, Jan 3 (Reuters) - Brookfield has delayed

the sale of its Citypoint tower in London after bids fell short,

forcing the property manager to extend debt repayments, a source

familiar with the matter said, the latest sign of strain on

Britain's battered office market.

Canadian investor Brookfield had been seeking around 500

million pounds ($620 million) for the 36-storey office tower,

but bids came in below 400 million pounds, prompting the owner

to pause the sales process, the source told Reuters.

While there is no live sales process for Citypoint

currently, Brookfield may decide to try to sell the property

again if market appetite improves, the source added.

Creditors have given Brookfield another three months to

repay loans that back the Citypoint tower, delaying the deadline

to April 20, according to a regulatory filing published on

Thursday.

Debts secured against the building total around 460 million

pounds, according to credit rating agency Morningstar DBRS.

"We haven't made any decisions yet and we continue to have a

number of options available to us," a spokesperson for

Brookfield said.

The planned sale of Citypoint has been seen as a major test

of demand for office property that has been hit by changing

working habits and a shift to greener buildings.

Morningstar DBRS last month downgraded credit ratings on

several of the loans secured against Citypoint, citing the

challenges of selling the property on time prior to the original

January deadline and of meeting the seller's valuation

expectations.

Brookfield's 500 million pounds asking price for Citypoint

had compared with its most recent formal valuation of 670

million pounds, and the 560 million-pound price tag when

Brookfield acquired it in 2016, according to CoStar.

Built in 1967 to house the headquarters of BP, Citypoint

underwent major renovation in 2000 and 2021.

($1 = 0.8059 pounds)