Beacon Defaults on $678 Million Loan for London’s CityPoint
A Beacon Capital Partners Inc. fund defaulted on 429 million pounds ($678 million) of loans secured by a 36-story London building known as CityPoint, according to a regulatory filing.
The borrower missed an interest payment due on Jan. 20., said a filing to the Irish Stock Exchange by Ulysses (European Loan Conduit No. 27) Plc, which issued bonds backed by the debt.
Beacon investment vehicle CityPoint Holdings I Ltd. is the borrower, according to the loan prospectus. Morgan Stanley Mortgage Servicing Ltd. informed Ulysses of the shortfall as the servicer of the bonds, according to the Feb. 15 filing. “Interest payment default remains outstanding as at today’s date,” it said.
The payment shortfall came as talks to restructure the loan were proceeding, according a Morgan Stanley investor report on the transaction. Morgan Stanley, which is being advised by Brookland Partners LLP, entered a standstill agreement until March 5 to give the negotiations time.
Morgan Stanley spokesman Tom Walton declined to comment. Alex McCallum, a Beacon spokesman in the U.S., also wouldn’t comment.
Beacon Capital, based in Boston, owns News Corp.’s headquarters at 1211 Avenue of the Americas in New York. The company said in November that it’s considering alternatives to selling the property after bids came in for less than its $1.9 billion target price.
CityPoint in the City of London financial district has 707,000 square feet (66,000 square meters) of space and is Beacon’s largest asset in the U.K. capital, the company said on its website. The original building, constructed as BP Plc’s global headquarters, was redeveloped in 2001.
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