Beacon Capital Partners default on loan interest payment
Beacon Capital Partners, the American owners of City Point Tower, located on the northern fringe of the City of London, have defaulted on a loan interest payment which could ultimately lead to the sale of the building.
One of the Square Mile’s most notable buildings, City Point Tower is 35 storeys high and was initially bought by Beacon Capital Partners in 2007 for £650 million from Tishman Speyer.
July saw the building’s debt valued at £447 million which has diminished slightly to £535 million. Interest payment defaults have come about on a £429 million securitised element of a loan which was transferred to Morgan Stanley yesterday for “special servicing”.
Beacon Capital Partners have until March 5th to come up with a plan to restructure the building and inject new equity and are unsurprisingly feeling the pressure. Brookland Partners have advised them to come to a consensual restructuring to avoid a potential firesale.
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