Investream City portfolio sinks into negative equity

A portfolio of City office assets owned by Maurice Golker's and Mark Morris's Investream has fallen into negative equity following a valuation last month.

The portfolio of five buildings around the Leadenhall area had been earmarked for redevelopment into a major City office scheme, with the site having space for more than 1m sq ft of offices. A valuation in August showed that the value of the properties was £140m, ­compared with outstanding debt of £172m.

The debt was provided and securitised by collapsed investment bank Lehman Brothers. The loans are in special servicing having matured in May this year, and Investream is in talks regarding a possible extension of the debt maturity with special servicer Hatfield Philips.

The investor has regeared insurance firm Markel's 70,000 sq ft lease at 49 Leadenhall Street, EC3, for a further four years, giving it time to work up plans for a 1.25m sq ft office development. Markel's lease was scheduled to expire in 2011.