Brookfield has agreed to a one-year extension on a loan secured against one of the City of London’s first skyscrapers.

A £368M loan secured against the 706K SF, 35-storey Citypoint was due to mature on 20 January. It has now been extended to 20 January 2025, according to a stock exchange filing.

In return, the Canadian investment giant has agreed to a 0.35% increase in the senior loan margin. The one-off maturity fee is equal to 0.25% of the principal amount outstanding of the senior loan and will buy a hedging for 100% of the senior loan at a strike rate of 2.5% a year.

Brookfield bought the building for £561M in 2016, and the senior loan from Morgan Stanley was securitised in 2018. A £92M mezzanine loan is also secured against the building, putting the total debt at £460M.

Citypoint was 18% vacant as of October, according to a report to bondholders from loan servicer Mount Street. The annual rent is £32M, up £2M from a year ago due to the expiration of rent-free periods.

The weighted average unexpired lease length is 7.3 years to tenants such as law firms Simpson Thacher & Bartlett and Simmons & Simmons.

The tower was revalued at £670M in March, a 10% drop from its previous value of £740M. City office values have fallen since then. Citypoint was built in 1962 and remodelled in 1998.