Construction of the Pinnacle has been stalled for a second time. Developer Arab Investment has failed to secure enough pre-lets for the office to rent in the City of London.
Planned office to rent in the City of London, the Pinnacle at Bishopsgate, has experienced another delay in construction amid funding issues.
Upon completion the story is set to be the tallest office to rent in the City of London’s 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. This is an indication that the new office to rent in the City of London is just 11% complete. Work on the property will now cease for the second time.
Work first stopped last year but began again in September after Arab secured £500m of funding from lenders including HSH Nordbank and HSBC. This meant that Arab only needed to secure pre-lets to keep construction going. However, only around 10% of the office to rent in the City of London has reportedly been 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. The current economic climate has left many businesses reluctant to tie themselves to a pre-let due to financial uncertainty and fear that the economy may get worse. Developers have also found difficulty in securing tenants in recent months making it hard to maintain their developing projects. Just recently the construction of a skyscraper was delayed in Shoreditch after a pre-let tenant pulled out.