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p>A lifeline for a major London skyscraper on the brink of receivership has emerged, following positive talks over a £315m refinance deal.
A productive meeting occurred last Thursday on the £315 million refinance deal for the 46 storey office space, the Heron Tower, after heated debates between investors earlier on in the week.
Reuters reported last Wednesday that the tower may face sale from lenders after owners rowed over the refinancing deal. Reuters’ source who was close to the talks reported: "It's a boardroom battle between the investors. If the shareholders can't agree between themselves on how to take it forward, and the bank facility needs refinancing, then the bank will need to appoint receivers,”
A meeting the following day has been seen to be more productive and pulled the Heron Tower away from the prospect of appointing receivers. Wells Fargo, Landesbank Hessen-Thüringen and Nationwide are said to be part of the group of banks in the refinancing talks. As an result of the meeting refinance is said to be the most likely solution.
The deal is required because the skyscraper is reportedly struggling to gain its quota of tenants with London’s weak office lettings market. Forty one per cent of office space remains unoccupied in the Heron Tower since opening in 2011.
The tower is owned by a trust which includes developer Heron International, headed by property pioneer Gerald Ronson, Oman’s largest sovereign wealth fund and Saudi investors.
Mr Ronson used a £370 million loan from Hypothekenbank and Landesbank Hessen-Thüringen to develop the Heron Tower but only end up using £300 million.
When fully let the tower, which is based near Liverpool Street railway station in the City financial district, is estimated to produce £30 million in annual rent.
A lifeline for a major London skyscraper on the brink of receivership has emerged, following positive talks over a £315m refinance deal.
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