A £53m positive movement in the fair value of the interest rate swap on Canary Wharf landmark Citi tower enabled its owners to cut their losses by almost 60% last year.
Accounts for 25 Canada Square, one of three special-purpose vehicles set up by Derek Quinlan and Glenn Maud’s Propinvest to hold the asset, reveal a loss of £62.7m for the year ended 30 June 2011. This compares with a loss of more than £155m a year earlier.
However, the vehicle continues to show a rising shareholder deficit, which last year totalled £561m.
Propinvest and Quinlan owe lenders on the building some £1.2bn which, according to the accounts, is due in July and October this year.
The debt is split into a £321m junior loan held by Royal Bank of Scotland and a £882m senior loan held by Ireland’s National Asset Management Agency and a group of German banks. It matured in 2010 and has been extended on a rolling basis ever since, while a restructuring solution is sought.
Jones Lang LaSalle was appointed to sell the building for £1bn last year, but buyers were put off due to the lease structure and substantial inflation and interest rate swaps.
The latest valuation of the building, which Quinlan and Propinvest bought for £1.1bn in 2007, puts it at £907m.
