Merlin Properties' main tenant CoreWeave faces default risk

✦ Meridian Analysis

CoreWeave, the primary tenant of Merlin Properties’ data‑centre portfolio, is reported to be facing a default risk. Merlin derives roughly 90 % of its data‑centre revenue from CoreWeave. No buyer is identified in the report, and the situation is described as a risk. From a restructuring perspective, professionals would focus on the tenant’s ability to meet lease obligations, the potential for rent renegotiation, and the impact on Merlin’s debt service coverage ratios, given the high concentration risk. Earlier this month Meridian reported that Bond Street REIT expanded its credit facility to $300 million. What remains undisclosed are the precise terms of CoreWeave’s lease, any arrears already accrued, and the composition of Merlin’s financing package that could be tested by a default event. Details on any restructuring plan, covenant waivers, or potential capital‑raising actions have not been provided, nor have the identities of legal advisers or the timeline for any remedial steps. Monitoring regulatory filings and any statements from Merlin’s board will be essential to gauge the ultimate impact on the socimi’s balance sheet.

Additional sources: Merlin sufre por su exposición a los centros de datos pero el riesgo de CoreWeave "no descarrila la tesis de inversión" · El 'Microsoft de la IA' desembarca en España: alquila a Merlin el 60% de sus 'data center' · El gigante de la IA Coreweave desembarca en España en los centros de datos de Barcelona y Álava de Merlin | Empresas | Cinco Días · El gigante tecnológico CoreWeave desembarca en el centro de datos de Merlin en Barcelona

The Meridian Weekly