Development Securities has extended a loan note to the purchaser of Oriental City in Colindale, north London for a third time.
In a stock exchange announcement this morning investor Peter Virdee has been given until 28 November to repay the loan note for Oriental City, the former Chinese shopping centre in north London, from DevSecs.
DevSecs said it had agreed to a further extension of terms for the £52m loan following the previous deadlines of 31 July and 15 September.
DevSecs said the extension has been granted: ‘to assist the purchaser in completing his financing arrangements.’
It added that it is probable that ‘as part of these financing arrangements, a minority proportion of the money due under the loan notes may be deferred for an extended period beyond March 2010.’
25% of total paid
An amount equating to approximately 25% of the disposal price has already been paid by a Virdee-led consortium to DevSecs who holds these funds on a non-refundable basis.
All payments under the loan notes are currently secured by way of a first charge on the property in favour of DevSecs.
Interest on the £52m loan has been received in full as at 31st July 2008.
The site at 399 Edgware Road has planning permission for 307,480 sq ft of shops, 520 flats and a school. Virdee completed the deal to buy the site in 2007.