Talks to sell the Adelphi Building, WC2, to US financial services firm Perella Weinberg are ongoing despite a £235m securitised loan on the building maturing yesterday.
A notice released to the stock exchange today said that an “event of default will arise unless the non-payment is remedied within three business days of the due date” of 17 October 2011.
It added that the special servicer, Barclays Capital Mortgage Servicing, is continuing discussions with the Adelphi borrower and the junior lender in respect of maximising recoveries.
It added that it will provide a further information update as soon as such information is available.
The building was put up for sale by Dubai investment vehicle Istithmar in a “consensual process” in March after the loan which was provided and securitised by Barclays Capital went into default.
It went under offer for about £285m to the US financial services firm in July but talks with banks to finance the deal have been problematic a number of lenders originally willing to provide debt pulling out because of eurozone turmoil.
The full statement read: “In a report issued by the special servicer to the noteholders dated 20 September 2011, the special servicer reported that a consensual sales process was currently in place.
“In the issuer update notice of 5 October 2011, the special servicer stated that owing to certain events related to the proposed sale, prospects were uncertain in relation to full repayment of the loan at maturity.
“The Adelphi loans did not repay at their final maturity date, 17 October 2011. A non-payment event of default will arise unless the non-payment is remedied within three business days of the due date.
“The special servicer is currently continuing active discussions with the Adelphi borrower and the junior lender in respect of maximising recoveries and will provide the Issuer with a further information update as soon as such information is available.”
bridget.o’connell@estatesgazette.com
