The buyer of Development Securities’ Oriental City in east London has failed to pay, despite three payment extensions, Property Week has reported.
Now in discussion with the buyer, the investment and management company is still waiting for £52 million.
It has announced it was “in discussion with the purchaser in order to ensure that the optimum real estate and financial solutions are achieved”.
Brent Council gave the scheme the go-ahead in 2006, with plans agreed for 300,000 sq feet of internal retail space and private housing.
The site has planning permission for 500 new apartments set within a series of towers and was sold to a consortium led by a private investor.
As payments have been missed three times, the loan has now not been extended – although Development Securities does still hold the £68 million deposit, which is non-refundable.
Invariably, new offices in London are situated in tower blocks as developers try to maximize space.Share: