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Carlyle struggles to pay €19m loan

The US private equity firm is having to discuss its predicament with bondholders of a securitised loan backed by an office in London that Carlyle acquired in 2006.

The Carlyle Group is struggling to repay a £17 (€19 million; $24 million) loan agreed in 2006 to buy an office block in London.

The US firm and its special servicing company, Hatfield Philips, are exploring options ahead of the repayment of the loan which matures on 15 April, according to reports. Lehman Brothers originated the loan.

Carlyle acquired a long leasehold interest to the office in Monument Street in central London in joint venture with developer Bellhouse Joseph.

It acquired the property along with a loan from Lehman’s which was subsequently subordinated.

Carlyle and Bellhouse Joseph acquired planning permission to develop the site however the inability of Carlyle and its partner to refinance the loan has put the development in doubt. Interest payments on the loan are being met by income from the main tenant, Lloyds Bank.