By Andy Sambidge
Shareholders in Heron Tower in City of London said to be divided over future of building
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.For all the latest real estate news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Seems greed has adversely downgraded their relationship! Tough.