Downfall of a dynasty

Downfall of a dynasty

The last days of Ricardo Salgado and Banco Espírito Santo

Iran's pivotal moment

Iran's pivotal moment

Tehran is at a crossroads…

Western Europe: No break in sight for real estate borrowers

Long-term hedging put in place before 2007 has become an extremely expensive problem for banks looking to sell down their real estate exposure.

As London’s glut of commercial real estate balloons following the addition of 585,000 square feet of unlet office space in The Shard this month, the full implication of all these empty desks is being felt at addresses across the UK capital. One such address is Citypoint Tower, a 703,382 square foot building at One Ropemaker Street in the City of London that might soon be on the market if the collapse of a restructuring deal on its £429 million ($669 million) outstanding senior debt in late May leads to enforcement. Like many other borrowers, its owner, Beacon Capital Partners, faces a standoff between its junior and senior lenders as well as a crippling £100 million bill to break the interest rate swap that was put in place to hedge the senior loan. The CMBS deal was arranged by Morgan Stanley.

Beacon Capital Partners is...

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Final days of Ricardo Salgado and Banco Espírito Santo

Euromoney Pulse Survey: Renminbi’s internationalization continues apace
When BES collapsed earlier this year, markets briefly feared a return of the crisis to Portugal and to Europe. Even after the bank's bailout, investigators still pore over bank documents, transfers and deals, trying to make sense of Salgado’s last days battling to keep his empire afloat. The backstory is of an extraordinary decades-long rivalry between the country's two pre-eminent business families.