It has been reported that global financial services firm, Morgan Stanley, are set to seize power of the Citypoint skyscraper in Barbican.
This news comes after the owners of Citypoint – American investment form, Beacon Capital Partners, failed to agree to a rescue deal. The company purchased the 36-storey tower back in 2007 for £650m, setting the record fir Britain’s largest property deal. However, this deal was back by a £535m loan from Morgan Stanley.
Citypoint was recently valued at £447m – a price which is less than the original loan. This is due to several interest payments that have been missed by Beacon. There are also reports circulating that a plan to restructure the loan and inject new equity into the skyscraper has been blocked by an activist hedge fund that bought some of the debt.
Morgan Stanley are beginning to lose patience with Beacon, which is a common theme with lenders and borrowers at present.
The current trend for London Skyscrapers seems to be leaning towards residential developments, such as The Heron, also in Barbican, and Centrepoint in London’s West End. Presently, It is unknown what plans Morgan Stanley has in store for the skyscraper, however, Search Office Space will keep you updated on this story as it develops.