The Vatican is close to a deal with two private-equity firms to sell a London commercial building at the centre of one of the major scandals of Pope Francis' reign.

An investment arm controlled by Bain Capital and London-based property investor CIT Group Partners are in talks to buy 60 Sloane Avenue from the Vatican for close to £200m, equivalent to around $270m, according to people familiar with the matter. The deal could be announced in the coming weeks, assuming talks don't break down.