Work on the Pinnacle tower – which is set to provide London offices when completed – has ground to a halt following a failure to secure enough pre-lets.
Developer, Arab Investments, has struggled to secure tenants for the building – which when completed is set to feature 64 storeys – and as a result Brookfield Construction have stopped work on the property.
This isn’t the first time that work on the building has stopped; however, in the previous instance Arab Investments secured Â£500 million funding from a number of lenders, including HSBC and HSH Nordbank – leaving the developer to secure pre-let tenants.
Reportedly just 10 per cent of the Pinnacle tower has been let out and just 11 per cent of the building – which is scheduled for completion in 2013 – Â has been completed.
A source told Reuters: “About a week ago building work stopped.
“The bottom line is that the Pinnacle will need looking at from a funding point of view or a sizeable pre-let which is difficult in this market.”
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