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Warner Estate Suffers Worst Trade In 118 Years

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http://business.timesonline.co.uk/tol/busi...icle6734423.ece

Warner Estate, the property fund manager, said that it was grappling with “possibly the worst year in our 118 year history†as the company reported a loss of more than £60 million and said it was in talks with bankers about a restructuring.

In a statement, the company said that talks with lenders were progressing well and that it had adequate resources to continue operating for the foreseeable future.

But it warned that until new lending facilities were in place “uncertainty over the ability of the company... to continue as a going concern must remainâ€.

Philip Warner, chairman, said the group, which manages almost £2 billion of property across the UK, had been hit by a vicious combination of recession, the credit crunch and slumping property values.

“It is the latter that has had most impact on the group’s net asset values and hence put pressure on our financing, although over the period we have maintained a substantial level of income,†Mr Warner said.

Warner said that its net asset value was only just above its level of debt, which currently stands at £238 million following a series of disposals.

In the previous year to March 2008 Warner had made a profit of £17.3 million.

Warner said that it was in talks with its lenders RBS, Bank of Scotland and Barclays.

Its adjusted net asset value per share stood at 8 pence at the end of the latest year, down from 557p a year ago.

A company that can only go from strength to strength.

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Warner said that it was in talks with its lenders RBS, Bank of Scotland and Barclays.

ie the govt

Hah hah, true Warner does own a lot of crap, but I think its an anomally (sp?) in the quoted REIT sector

I met one of the Warner family once...not..very..bright... ;)

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I met one of the Warner family once...not..very..bright... ;)

they can't have been that dumb to last 118 years.but you do wonder how a company as old as that has any debt at all.

They realised the gene pool had run dry, got in "professional" management who sold their good stuff and invested heavily, with mainly borrowed funds and equity co-investment from the banks, into buying secondary shopping centres, offices and industrial (maybe not all three classes can't remember) in an effort to become an "asset management company"

So they were left with a lot of secondary sh!t and lots of debt when the tide went out, ergo the banks will end up with all the equity

Don't know if the family sold down beforehand :unsure:

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