Thu, 19 Sep 2013 | ADMINISTRATION
The Heron Tower, which sits among London’s tallest skyscrapers with 46 floors, could slip through its owners’ fingers after being told to repay debts or face the prospect of selling up.
The group of banks that backed the tower were due to receive their repayments in January, and are now considering bringing in administrators.
Gerald Ronson, property investor, headed the project to build the 46-storey tower located near to Liverpool Street Station in the City financial district in 2008, choosing to face the risks of a volatile property market place.
Trouble reared its ugly head when his company, Heron International, could not agree with the other two shareholders – the State General Reserve of Oman and unidentified Saudi royal figures – over how to repay the £315 million of debt.
On a positive note refinancing the debt is still an option, despite the banks mulling a forced sale.
The situation is exacerbated by a weak office lettings market, in a hangover from the credit crunch, with firms being forced to stay where they are or extend existing leases, and not move into new spaces.
The Heron, finished in 2011 and with Europe’s largest private aquarium, has still to be fully occupied and is presently 60 per cent leased. The offices will bring in £30 million of yearly rent when fully let.
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