Thursday 22 November 2012

Has the Pinnacle reached its peak? | UK news | The Guardian

The owners of the Pinnacle – the partly built skyscraper that was planned as the tallest in the City of London – face a winding-up order that could see the site seized by the builders.

The ambitious £1bn project has been known as "the stump" since work stopped almost a year ago. Only the core of the first seven storeys has been built. Banks pulled the funding after the developer, Arab Investments, failed to secure a major tenant.

The high court has ordered the special purpose vehicles that own the scheme to pay £16m of unpaid fees to the main contractor, Brookfield Multiplex, after they failed to file a defence. The project is majority backed by a Saudi Arabian investment manager, Sedco, while the fund manager Pramerica also owns a stake. Brookfield has said it will launch insolvency proceedings against the owners if it does not receive payment by Friday. Other developers have circled the project in the hope of a sale.

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