Koll Deal With Union Pacific Is Derailed : Acquisition: The railroad holding company rejected the developer’s financing package for its real estate unit.

The Koll Co. said Monday that its attempt to acquire a real estate unit from Union Pacific Corp. for $532 million had fallen through because the railroad holding company rejected the developer’s financing package.

The two firms tentatively agreed to the huge real estate transaction involving more than 15,000 acres and 30 industrial buildings in early December.

It would have been the largest real estate deal ever for Newport Beach-based Koll.

“The financing package that Koll Co. put together was not acceptable to Union Pacific,” said Koll spokesman Martin Brower.

He said he could not comment on the specific areas of concern in the proposal.

However, a spokesman for Union Pacific--parent of the nation’s second-largest railroad firm, Omaha-based Union Pacific Railroad--said that Koll was unable to raise the necessary financing by the deadline last Friday.

“They were unable to come up with the financing within the required period of time,” Union Pacific spokesman Marvin Zim told the Associated Press.

When originally announcing the deal, Koll identified UBS Securities, a subsidiary of United Bank of Switzerland, as its lender.

The company said it planned to acquire the property with a partner, which it declined to identify.

Koll planned to acquire most of the assets of Union Pacific Realty, a division that managed land holdings for the parent corporation, in at least 19 states, mostly in the West.

Zim said the assets of Dallas-based Union Pacific Realty are still for sale.

Union Pacific authorized the sale of the real estate assets last April, saying it wanted to focus on its transportation operations.

Koll, one of the West Coast’s largest property owners, negotiated with Union Pacific for several months and agreed to acquire the vast tracts of mostly industrial property.

Koll officials said the company intended to develop most of the real estate.

The proposed acquisition would have added substantially to Koll’s holdings in the West, but would also have given it a toehold in several eastern markets, including Washington, D.C. The company has expressed an interest in expanding into the East.

The deal included three large industrial parks in Southern California, industrial land in several Northern California cities, an industrial park near Seattle, an office building and land just outside Washington, and five buildings and 1,100 acres near Chicago.

Privately held Koll says it owns about $4 billion in real estate on the West Coast, much of it acquired since the company began to buy buildings in the early 1980s.

The company’s previous largest deal came in 1989 when it bought $300 million in property from Wells Fargo Mortgage & Equity Trust.