Development Securities has extended a loan note to the purchaser of Oriental City in Colindale, north London for a second time.

In a stock exchange announcement this morning investor Peter Virdee has been given until 15 September to pay back the loan for the purchase of Oriental City, the former Chinese shopping centre in north London, from DevSecs.

In a statement to the stock exchange DevSecs said it had agreed to a further extension of terms for the £52m loan following the previous 31 day extension to 31 July 2008.


New financing arrangements
DevSecs also said as part of the new financing arrangements, a minority proportion of the monies due may be deferred for an extended period beyond 12 months after September 2008.

All payments under the loan notes for the former Oriental City at 399 Edgware Road, Colindale, are secured by a first payment made by Virdee. Virdee has already paid around 25% of the disposal price which DevSecs is holding on a non-refundable basis.

Interest in full

Interest on the £52m loan has been received in full as at the end of July.

Virdee bought the 100,000 sq ft retail scheme last July in a mixture of cash and loan notes. The redevelopment was opposed by Chinese community groups, and DevSecs subsequently agreed a £2m compensation package with the building's tenants.

DevSecs has secured planning permission for 307,480 sq ft of shops - including a replacement Oriental City - 520 flats and a school.