Saturday, Jun 20, 2009
Commercial property down 50% in London
Bloomberg: Simon Halabi's [Property] Companies Default on $1.9 Billion Debt
Billionaire investor Simon Halabi’s real estate companies defaulted on £1.15bn of bonds backed by nine London office buildings as the recession cut the value of the properties by about 50 percent. The properties, including JPMorgan Chase & Co.’s offices at 125 London Wall and 60 Victoria Embankment, are now worth less than the value of the loans that back them. Fitch Ratings Ltd. downgraded the bonds on June 5, citing the prospect that JPMorgan would move from the buildings. Fitch also said the notes were unlikely to be repaid when they expire in October.
Posted by drewster @ 10:05 AM (478 views) Add Comment
4 Comments
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1. japanese uncle said...
50%! Tut, tut, tut, Haven't seen anything yet.
2. little professor said...
Another one who confused debt with wealth. He lived the high life [Rolls Royce Phantoms, 130 foot yachts moored in the Mediterranean] on money borrowed against a porfolio of London commercial and residential properties, boasting that he was worth $5billion, when in fact after subtracting his debts he had equity of 'only' £500million, even at the peak in 2007.
Since then, the value of his properties has halved, leaving him in over £2billion of negative equity. Your average binman has a higher net worth than this chump.
3. drewster said...
LP,
His paper wealth might be negative, but I'm sure he's still living the high life. One rule for them and another for us?
4. little professor said...
Yep, as usual for these spivs, he will have made the purchases using limited offshore companies, which.will just go bust and the debt will be wiped out. Whereas mug punters who fall into negative equity have to carry the debt around their necks for at least twelve years