BARCLAYS BANK has granted additional time to Derek Quinlan's co-investor in Citigroup's 42-storey tower block at Canary Wharf, London, to refinance an £850 million (€1 billion) loan that is unconnected to Citi's building.
The loan in question was extended in 2006 to Propinvest, a company controlled by businessman Glenn Maud.
Propinvest and Mr Quinlan each own 50 per cent of the landmark tower at 25 Canada Square, leased to Citi for 25 years, following a £1 billion deal last year.
That building, in which Mr Quinlan is an investor in a private capacity, is not among the 35 properties secured against the Propinvest loan managed by Barclays.
In a filing yesterday to the Irish Stock Exchange, Barclays' vehicle Gemini (Eclipse 06-3) said Propinvest had been granted more time to refinance the loan following a drop in the value of the loan collateral.
The loan is secured against 35 properties located throughout Britain that are owned by partnerships that Propinvest controls. Some 60 per cent of the properties are stores and 20 per cent are offices. The value of those properties fell more than 16 per cent between April 17th and September 26th, according to a previous statement to the exchange.
Barclays had given Propinvest another month to refinance the facility after a previous deadline set for October 17th lapsed. "The special servicer is continuing dialogue with the borrowers in connection with the outstanding defaults on the senior loan," said the statement yesterday.
The bank expects to provide more information within 15 days, it said, adding that Propinvest will offer Barclays an "alternative proposal" to comply with the loan agreement in "the near future".
A spokesman for Propinvest declined to comment. A spokesman for Mr Quinlan's company, Quinlan Private, declined to comment.
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