A £429m securitised loan on Beacon Capital Partners’ Citypoint Tower has been transferred to special servicing.
Loan servicer Morgan Stanley Mortgage Servicing yesterday announced that the transfer took place following an interest payment shortfall that occurred on 20 January and resulted in an interest payment default.
Beacon has been negotiating an injection of up to £20m in fresh equity into the loan securing the 34-storey City tower, EC2, to stave off this shortfall.
It needed to strike a deal between with bondholders in the £429m Ulysses ELoC 27 CMBS and the £106m two-tranche junior loan over the size and ranking of the equity injection.
The office building was bought by Beacon Capital for a then-UK record £650m in 2007, but has since declined in value to £447m as of 8 February 2011.
The outstanding securitised loan balance is £429m.
Debt specialist Brookland Partners is advising Morgan Stanley Mortgage Servicing on the restructuring, while AgFe is advising Beacon.
