Heron Tower faces sale after refinancing row

LONDON Wed Sep 18, 2013 12:38pm BST

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LONDON (Reuters) - London skyscraper the Heron Tower could be sold by its lenders as its owners struggle to agree a refinancing deal against the backdrop of a weak office lettings market, a source familiar with the talks said.

The 46-storey tower, which sits close to Liverpool Street Station in the City financial district, is owned by a trust that includes developer Heron International led by property entrepreneur Gerald Ronson, the State General Reserve of Oman and Saudi investors.

"It's a boardroom battle between the investors. If the shareholders can't agree between themselves on how to take it forward, and the bank facility needs refinancing, then the bank will need to appoint receivers," the source said.

The row comes against the background of a difficult office lettings market since the financial crash, which forced many companies to stay put or extend existing leases rather than sign for new space, particularly in the financial district.

(Editing by Keith Weir)

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