London development site put into administration

A group of companies that own the Leadenhall Triangle site in London have been put into administration.

The group own four buildings on the site between Leadenhall Street and Fenchurch Street, which was once slated to be developed into the headquarters for a global investment bank.

The buildings were valued at £140 million two months ago and the owners, who are clients of investment manager Investream, had a £153 million loan secured against the site, which matured in April.

Investream, which is also the site's development manager, had been in talks to bring in new equity to aid a refinancing of the site, but PricewaterhouseCoopers have since been called in as administrators.

The group of companies are registered in Guernsey and the administration was approved by the Court of Guernsey yesterday evening.

The site was once likely to be occupied by investment bank Deutsche or JP Morgan once plans for the 1.25m sq ft commercial development had been finalised. However, following last night's administration, vacant possession may not be available until 2015 due to some of the leases on the existing buildings being regeared.

It is thought that any new development planned for the site will be delayed until the current glut of planned commercial development in London – such as the Walkie Talkie tower - is completed.

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