The purchaser of Development Securities Oriental City in Colindale, East London has missed the third payment extension of £52m outstanding loan notes including interest from 31 July 2008.
In a Stock Exchange announcement this morning, DevSecs said it was ‘in discussion with the purchaser in order to ensure that the optimum real estate and financial solutions are achieved.’
The purchaser, a consortium led by investor Peter Virdee, has paid £68m or around 25% of the sale price which is held on a non-refundable basis by DevSecs.
Virdee has missed three previous extended deadlines from 31 July to 15 September, and now 28 November.
The loan has not been extended again.
All payments under the Loan Notes are secured by way of a first charge on the property in favour of Development Securities.
The former Chinese shopping centre site at 399 Edgeware Road has planning consent for 307,480 sq ft of shops, 520 flats and a school following Virdee’s purchase in 2007.