Oman, Saudi investors 'in dispute' over London skyscraper

  • Share via facebook
  • Tweet this
  • Bookmark and Share

One of the tallest buildings in the City of London, which is part-owned by investors in Oman and Saudi Arabia, is reportedly close to being put up for sale amid a dispute between its shareholders.

A Sky News report on Wednesday said bankers to the 46-storey Heron Tower on Bishopsgate are considering calling in receivers as a consequence of the row.

The tower's three investors are led by Heron International, the developer headed by Gerald Ronson, the property entrepreneur while other shareholders are the State General Reserve of Oman and undisclosed members of the Saudi royal family.

Sky News said the three are reportedly in dispute over the management of the building as well as the circumstances in which they can realise value from their investments.

It added that the Heron Tower has rented out just 60 percent of its available space since opening in March 2011. When fully let, it is expected to command total annual rent of in excess of £25m, according to previous reports.

Sky News quoted a source as saying there had been "some letting covenant issues" to resolve with the lenders but insisted that the building remained financially viable.

However, the report said that the Heron Tower also required roughly £120m in fresh equity and that talks between the shareholders had broken down "recently" over the terms and structure of that new financial investment.

Heron International counts some of the world's wealthiest business people, including Steve Wynn, the casinos magnate, and Larry Ellison, the software tycoon, among its investors.

None of the parties involved were available for comment, Sky News reported.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

Posted by: Anon

Seems greed has adversely downgraded their relationship! Tough.

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Features & Analysis
Trump casino resort business files for bankruptcy

Trump casino resort business files for bankruptcy

The Donald founded the companies but is now suing them to have...

Do celebrity branded projects ever work?

Do celebrity branded projects ever work?

The long list of celebrity-endorsed real estate developments...

1
Is this the end of the Gulf’s Indian cash dash?

Is this the end of the Gulf’s Indian cash dash?

From currency woes to taxation loopholes closing and a clampdown...

3
Most Discussed