JR Global REIT Loses U.K. Court Case Over Finance Tower Valuation
JR Global REIT (KRX:348950) has lost a lawsuit over the valuation of its Finance Tower office building in Belgium.The U.K. Commercial Court upheld the validity of the tower's appraisal from global commercial real estate consulting firm Jones Lang LaSalle (JLL), according to a Wednesday filing with the Korea Exchange.Under the ruling, the cash trap, which is a cash flow prevention measure, stays in effect.JLL placed the Finance Tower's valuation at 920 million euros, which pushed the loan-to-value ratio above the cash trap threshold of 52.5%, triggering the clause, according to reports.Tour des Finances, the company's Belgian subsidiary, filed the case in the U.K. court against CBRE Loan Services, which represents its lenders.The REIT is currently negotiating an extension of the lease deal to normalize operations and is in talks with major financial institutions regarding financial terms to address the cash trap situation.
