Topland has confirmed that one of its subsidiaries, Topland Nodnol, a stand alone special purpose vehicle which owns 33 King William Street, has been placed into administration after the syndicate of banks which lent against the property, led by the Co-operative Bank, enforced a technical covenant breach.
In a statement, Topland said: “Topland was surprised that the syndicate of banks led by the Co-operative Bank decided to enforce a technical covenant breach on an otherwise performing loan that matures in June of next year. The interest and amortisation requirements on the loan were all being serviced."
It is understood that Deloitte has been appointed administrators, and Deloitte Real Estate is expected to be instructed to handle the sale of the property, which Topland is keen to buy back.
The statement added: “Topland’s surprise was heightened when the Co-operative Bank refused a subsequent cash payment substantially higher than the valuation to restructure or buy out the loan.
“While this is of course not Topland’s preferred outcome Topland is providing every assistance to the administrator so the asset can quickly be brought to the market.
“Topland’s innate knowledge of the asset and its equity rich position will then ensure that Topland will deploy a compelling bid to regain ownership."
In June, Topland announced that GreycoatCore, acting on behalf of Topland, the freeholder of 33 King William Street, has achieved planning consent for the landmark City headquarters building.
The development will occupy an island site and comprise around 220,000 sq ft of highly specified office space providing floor plates of circa 23,000 sq ft. The building would suit a range of occupiers with the ability for trading operations to be accommodated on the lower floors.
GreycoatCore is a joint venture between Greycoat and CORE.
Source: James Buckley, CoStar News