KK DaVinci has handed back control of Tokyo’s landmark Pacific Century Place property to creditors after failing to reach an agreement with them.
According to a Bloomberg report, KK DaVinci may take a ¥13.7 billion (€105 million; $153 million) charge against one of its funds, with KK DaVinci possibly shouldering ¥2.3 billion. The report, citing a KK DaVinci statement, said the firm didn’t state the value of the loans or identify the creditors, which are believed to include Shinsei Bank.
DaVinci paid billionaire Richard Li ¥200 billion for the Pacific Century Place property in September 2006. The firm, led by Osamu Kaneko, was in talks with creditors to extend a loan facility from September 25.
DaVinci has been struggling with its debt loan, and earlier this year sought buyers for $4.5 billion of offices in Tokyo, including Pacific Century Place, although no disposals have yet been agreed.