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Billy Ballyckz

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Posts posted by Billy Ballyckz

  1. **** a doodle dooooooooooooo

    Three shopping centres owned by entrepreneurs the Reuben brothers in a joint venture with Lloyds have been placed into administration after prolonged refinancing talks failed.

    Lloyds has appointed Grant Thornton as administrator to the Sapphire Retail fund and its subsidiaries.

    The Reuben brothers owned a 50% stake in the fund which owns the Harvey Centre in Harlow, Essex; the Queen’s Arcade in Cardiff; and Charter Walker in Burnley, Lancashire. It is thought the centres were worth £300m at the peak of the market

    The fund has debt secured against the assets of just over £200m which was securitised by banks including Lloyds, Nationwide and Deutsche Hypo. It is thought Lloyds held the largest amount of the senior debt. The centres were valued at the peak in 2006 at around £300m.

    The Reuben Brothers vehicle - Aldersgate - has been trying to buy out Lloyds’ 50% share in the assets for some time following banking covenants on the fund being breached earlier this year. But an agreement on price was not reached.

    People close to the situation said Aldersgate is thought to have offered Lloyds a deal valuing the three centres at £130m but the bid was rejected and before an alternative bid could be made by Aldersgate the assets were placed into administration on Tuesday night.

    Malcolm Shierson, partner at Grant Thornton and one of the administrators, said: “All three shopping centres will continue to trade normally. Although each has generally traded satisfactorily in relation to regional and national trends, valuations for shopping centres generally remain under pressure and Sapphire is no exception to this.”

    Good old Lloyds

  2. Battersea Power Station owner reports dismal figures

    Real Estate Opportunities ’s shares plummeted 40% this morning after it revealed that its debts were £722m more than its assets.

    The London-listed company revealed a net deficit of 178p a share at 28 February, compared with a net asset value of 104p a share at the end of 2008.

    In that 14-month period it made a pre-tax loss of nearly £1bn and now plans to demerger its Battersea Power Station site as a separate vehicle in a bid to restructure .

    The company, which is 67% owned by Ireland’s Treasury Holdings, said in its results for the 14 months to 28 February 2010 that its loss before tax was £929m.

    It said the loss reflected a “significant negative revaluation in the group’s Irish portfolio” which has led to an overall £811m fall in the value of its portfolio and a £40m impairment of its listed investment in China Real Estate Opportunities (CREO).

    REO’s loss after tax was also significant at £828m equating to a loss per share of 248.2p. This compares to a loss after tax of £367m in 2008 and a loss per share of 107.8p.

    As part of plans to reorganise the debt-laden company REO said that board had resolved to “separate the Battersea Power Station project from the remainder of the REO portfolio into a new separately listed vehicle, subject to negotiations with relevant stakeholders”.

    It plans to launch a roadshow to attract a long-term equity partner into the station project ahead of an expected successful planning application process. It said it hoped to list the project before the end of the year.

    The station was valued at £388m which REO said showed a 4% reduction since its £406m valuation in 31 December 2008. REO said the station’s value had actually increased by 6% since June last year when it was valued at £365m.

    REO said it had also secured new lending terms on the Battersea Power Station loan facility, subject to completion of legal documentation.

    The company, which is chaired by Ray Horney, said that its financial performance had been affected by the “unprecedented conditions” in the UK and Ireland.

    Its total portfolio was valued at £1.1bn,which had reduced in value by 43% in the 14 month reporting period. There has been a 32% valuation fall since June 2009.

    REO’s property income for the 14 months reporting period was £44m. It has a cash balance of £39m at the year end which it said has since been boosted by £28m from sale of shares in CREO in March 2010.

    Horney said: “It has been an exceptionally challenging period for the company, as unprecedented conditions in the UK and Ireland impacted real estate valuations, and credit and liquidity remained very limited. However, the company has worked hard and is confident that it will be able to strengthen

    the balance sheet as we initiate discussions with certain key holders of loan instruments and continue to deliver a robust operational performance in the investment portfolio.

    “The board has also resolved to pursue a demerger of Battersea Power Station into a separate listed vehicle in time to coincide with the introduction of a new investor in the project. Whilst uncertainty remains

    with regard to the economic outlook, the board remains confident that the quality of the company’s portfolio and the experience and commitment of management will ensure the company is on a solid footing as markets recover.”


    Theres hope yet

  3. Salmaan Hasan, chief executive of Minerva, said it was a key milestone for the group.

    He said: 'With this strengthened financial platform in place, we remain fully focused on achieving our other key objectives. We are confident that we can deliver long-term value from our portfolio of high quality developments and investments.'

    Minerva has five main lenders and total debt facilities of around £1bn: Deutsche Postbank, Nationwide Commercial Bank, HSH Nordbank, Landesbank Berlin and Lloyds Banking Group.

    Speculation about its survival has been rife

    In February, Hasan, who was previously head of property finance at Deutsche Postbank, warned there was ‘significant doubt’ about its ability to continue as a going concern if ‘existing market conditions and property valuations do not improve’.

    Its level of gearing jumped from 46% to 67% in the second half of 2008 and the average interest cost of its debt, excluding joint ventures, was 6.6%.

    Before this refinancing around 11% of its borrowings were scheduled to mature next year.

    Read more: http://www.propertyweek.com/story.asp?stor...s#ixzz0RoyTVmS9

    Read more: http://www.propertyweek.com/story.asp?stor...s#ixzz0RoxXktJU

    Some of that print printy percolating through in the form of splints.

  4. To be fair, there isn't a single thing you can do to meet the required reductions.

    Lots and lots small things can go a long way though.

    Better insulation, lightbulbs, abolishing standby on tv's etc will all help while having minimal impact on lifestyles.

    If they abolished "standby" I would just leave on permenantly. Just turn the volume down at bed time.

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