Development Securities, the UK development and investment company, has confirmed that the investor who agreed to buy the Oriental City asset in London has not met the deadline to settle the outstanding loan notes despite three extensions of the payment schedule.
Development Securities, the UK development and investment company, has confirmed that the investor who agreed to buy the Oriental City asset in London has not met the deadline to settle the outstanding loan notes despite three extensions of the payment schedule.
In a statement, the London-based firm said: 'Development Securities acknowledges that these are unprecedentedly difficult market conditions and are now in discussion with the purchaser in order to ensure that the optimum real estate and financial solutions are achieved.'
The missed deadline of 28 November relates to £52 mln (EUR 61.2 mln) in loan notes and interest for the sale of the 9,300 -m2 retail property located at 399 Edgware Road, Colindale. The payments are secured by way of a first charge on the property in favour of Development Securities
The buyer has already paid an amount equating to approximately 25% of the disposal price and interest on the loan notes up to 31 July. These monies are being held by Development Securities on a non-refundable basis.
Development Securities sold the 9,300 -m2 retail property located at 399 Edgware Road, Colindale in September last year after deciding not to proceed with a mixed-use development on the site. The transaction price of £68 mln was made up of the £52 mln loan notes and the rest in cash. The loan notes were payable on or before 30 June 2008. Two further extensions were granted to give the buyer time to arrange the financing.
