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KK DaVinci hands back Li property

The Japanese fund manager has reportedly handed over control of the Pacific Century Place building that it bought from billionaire Richard Li in 2006 after failing to reach an agreement with creditors.

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.