Lack of buyers for No 1 Poultry loan in worrying sign for City’s property market

Bank of Ireland is trying to dodge a loss on a loan secured against No 1 Poultry, a worrying sign for London's commercial property market.

Bank of Ireland is trying to dodge a loss on a loan secured against No 1 Poultry, the building which houses the Coq D’argent restaurant at the Western edge of Bank junction, in what could be a worrying sign for London’s commercial property market.

The Irish lender has drafted in advisors to try to sell the £90m loan secured against the building, according to a report first published in the Financial Times.

However, sources familiar with the matter said the bank has only received offers for the loan in the £70m to £80m range. The bank is understood to be working to drive the price higher.

No 1’s Poultry’s owners Korea group, Hana Alternative Assest Management bought the building for £185m back in 2018. 

Hana is understood to be looking to refinance the loan ahead of its maturity next week while it tries to improve the building.

“We will continue to normalise our assets through consultation with senior lenders and mezzanine lenders,” the company said.

The office space in the building is leased to Wework, the troubled flexible workspace provider, which recently filed for Chapter 11 bankruptcy in the US.

The trendy workspace provider has since been trying to cancel or negotiate some of its leases. The FT said Wework’s lease at No 1 Poultry is” guaranteed by an entity not included in the US bankruptcy.”

City A.M has contacted Bank of Ireland and Hana Alternative Assest Management for a comment.