Construction of the Pinnacle tower has been delayed again

Construction of the Pinnacle has been stalled for a second time.

Developer Arab Investment has failed to secure enough pre-lets for the development.

City of London office space development the Pinnacle at Bishopsgate has experience another delay in construction amid funding issues.

Upon completion the story is set to be the tallest office space in the Financial District and will comprise of 64 storeys and be around 945 ft in height.

However, due to developer Arab Investments being unable to secure enough pre-lets for the space, building by Brookfield Construction has stopped. As it currently stands the skyscraper is just seven storeys tall an indication that the building is just 11% complete with this being the second time work has ceased on the property.

Work first stopped last year but began again in September after Arab secured £500m of funding from lenders including HSH Nordbank and HSBC leaving Arab to secure pre-lets to keep construction going, however only around 10% of the building has been reportedly let.

A Reuters source said: “About a week ago building work stopped.

“The bottom line is that the Pinnacle will need looking at from a funding point of view or a sizeable pre-let which is difficult in this market.”

It has not yet been stated when work is expected to continue on the building as the current economic climate has left many businesses reluctant to tie themselves to a pre-let due to financial uncertainty as the economy may get worse. Developers have found difficulty in securing tenants in the recent months because of this to maintain their developing projects, just recently the construction of a skyscraper was delayed in Shoreditch after a pre-let tenant pulled out.

Author: Amy Edwards | | 0 Comments

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