Davinci's Real Estate Fund Defaults

Davinci Holding KK, a Tokyo-based real estate operator, announced that a special-purpose company under its umbrella has defaulted on loans. The loans were non-recourse ones backed by the Pacific Century Place, a property in Tokyo's Marunouchi district, that Davinci's real estate fund acquired in 2006 for about 200 billion yen. The fund met with lenders ahead of last Friday's repayment deadline to discuss an extension, but the parties were unable to reach agreement.