Mailbox owner breaches covenant on £109m loan
The owner of the Mailbox has breached the terms of a £108.5m loan after a revaluation of the landmark Birmingham site slashed its value by more than £30m.
Mailbox REIT is now in talks with its lender, Deutsche Bank, after its loan-to-value (LTV) ratio soared to 69.1% - well above the agreed covenant of 60%.
It blamed "the outward yield shift for regional office assets in the current market largely due to the prevailing interest rate turbulence".
The year-end valuation, by Avison Young, reduced the property's value down ... You can carry on reading TheBusinessDesk.com for free, but you have reached the maximum number of pages an unregistered user can view. To register for an account, click here or login below...
