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Property Tycoon 'devastated' As Business Empire Collapses

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THE empire of Swansea property baron Roy Thomas has collapsed.

RT Properties managed premises occupied by businesses such as the city's Dragon Hotel, its Marks & Spencer store and Idols nightclub, in Wind Street.

But yesterday, Mr Thomas told the Evening Post almost all of his properties had now been transferred to principal lender RBS after the banking giant wrote down the value of the portfolio by between £30 to £35 million.

It is understood that the bank bought Mr Thomas's assets out of receivership.

Mr Thomas said: "I'm heart- broken, there was no need for this to happen, in my view.

"It is a hypothetical situation."

The property mogul, who also owns Swansea Airport said RT Properties, was placed in a financially unsustainable position after the firm was charged a fixed rate loan breakage fee of £14.8 million by its lender.

Mr Thomas is now negotiating with creditors and claims to be doing everything in his power to minimise the impact on them.

RT Properties ran a portfolio of 25 properties in Swansea, including buildings housing solicitors Morgan Cole, Ask restaurant, in Wind Street, and Mecca Bingo, in Carmarthen Road.

It also had nine properties in Cardiff including the buildings housing the HaHa bar and the Slug and Lettuce pub, in The Friary.

Mr Thomas has retained the former Visteon factory site, which he bought for around £7 million in 2007 and is now empty.

He maintains RT Properties was a "damn good business" which had secured 39 lettings in the 24 months leading up to March this year, including 31 which were as a consequence of high quality refurbishment.

Mr Thomas said he had been "very proud" RT Properties had let space in Alexandra House to airline giant Virgin Atlantic, which is due to bring 200 jobs to Swansea over the course of the next two years.

He said: "It is a complex situation. For me it is absolutely devastating because I feel it is an unnecessary situation.

"The bank is transferring all the properties except two into its own property company. It is a tragedy. The business was successful.

Chris Tymanowski, commercial property specialist at Peter Lynn and Partners, said falling property prices could have a serious impact on commercial property portfolios when high levels of lending were involved.

He said: "If any covenants in a loan facility agreement are breached a prudent lender will scrutinise the security of the lending. Breach of a debt servicing covenants by a borrower is in most cases a sign of financial difficulty.

"Given market conditions in the past few years and the threat of a double dip recession, lenders will now take breach of debt servicing covenants very seriously."

Full story at below link:

http://www.thisissouthwales.co.uk/news/Property-tycoon-devastated-business-empire-collapses/article-2566368-detail/article.html

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If they are doing this with Commercial Property then how long before it is the domestic property market.

The commercial properties in the above article encompass many of the 'important' business assets within Swansea. The city is gaining more and more empty stores by the month.

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Mr Thomas is now negotiating with creditors and claims to be doing everything in his power to minimise the impact on them.

Who else would be his creditors? I thought that would just be RBS who, according to this, have now called in the loans and taken over the properties?

Or am I missing something?

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"In a depression assets return to their rightful owners" Andrew Mellon

In a depression assets are transferred from poor to rich for a fraction of their value..

(Depends on the asset, of course)

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The Jig is up......all the "Debt operatives" will now cry, but they filled their roll as the bank needed them, now these "DO's" are heading for a ground Zero.................the fact that the plug is now being pulled will propt other to do the same...........its down hill from now on!!!!

Mike

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But yesterday, Mr Thomas told the Evening Post almost all of his properties had now been transferred to principal lender RBS after the banking giant wrote down the value of the portfolio by between £30 to £35 million

So, what has happened here exactly?

RBS has basically said the portfolio is worth 30 to 35 million less now than, presumably, last month?

Looking at the properties mentioned most of them either have good tennants - i.e. Marks and Spencer, Meeca Bingo, major hotel or nightclubs, which, presumably, bring in the rental cash.

The Visteon Factory closed down a few months ago - former Ford place - so I guess that lost a sizeable chunk of rental income but the others are good payers I would have thought - unless they have been negotiating down their rents?

So why would RBS call this type of commercial loan in now?

Is it because they simply no longer think the assets are worth the value of the loan or because paying back the interest on the loan becomes unsustainable?

Or is it because they are just writing down commercial assets across the UK/Globe?

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In a depression assets are transferred from poor to rich for a fraction of their value..

(Depends on the asset, of course)

Thats how the system works.

People are being dispossessed of their assets by the system of credit.

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Thats how the system works.

People are being dispossessed of their assets by the system of credit.

But didn't these people possess their assets by the system of credit?

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But didn't these people possess their assets by the system of credit?

Weren't those assets taken from the people by tyranny and violence to begin with?

As Aboriginies say, watching men argue over who owns what land is like watching fleas argue over who owns what dog.

The current system of borrowing from banks to buy property means they are selling you something that was never theirs (land) with something that never had (money created out of thin air).

Edited by Dave Spart

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He said: "It is a complex situation. For me it is absolutely devastating because I feel it is an unnecessary situation.

"The bank is transferring all the properties except two into its own property company. It is a tragedy. The business was successful.

"It was letting to small businesses on flexible terms. It leaves private investors and creditors out in the cold, and the whole thing is unnecessary."

If he was letting to small businesses on flexible terms I wonder what will now happen to them? Domino effect?

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The Jig is up......all the "Debt operatives" will now cry, but they filled their roll as the bank needed them, now these "DO's" are heading for a ground Zero.................the fact that the plug is now being pulled will propt other to do the same...........its down hill from now on!!!!

Mike

I do hope so!

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I do hope so!

I doubt that RBS is singling out this one company - I suspect this is going on across the UK with them.

Then again, didn't they roll over stuff in Dubai? Probably because they could not get their hands physically on stuff in foreign climes I guess?

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So, what has happened here exactly?

RBS has basically said the portfolio is worth 30 to 35 million less now than, presumably, last month?

Looking at the properties mentioned most of them either have good tennants - i.e. Marks and Spencer, Meeca Bingo, major hotel or nightclubs, which, presumably, bring in the rental cash.

The Visteon Factory closed down a few months ago - former Ford place - so I guess that lost a sizeable chunk of rental income but the others are good payers I would have thought - unless they have been negotiating down their rents?

So why would RBS call this type of commercial loan in now?

Is it because they simply no longer think the assets are worth the value of the loan or because paying back the interest on the loan becomes unsustainable?

Or is it because they are just writing down commercial assets across the UK/Globe?

Maybe because RBS realised that this guy was going to go down eventually, and they think that it is better to auction off these properties ASAP, because values will fall?

A local decision? Or a UK-wide strategy? Don't know.

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So, what has happened here exactly?

RBS has basically said the portfolio is worth 30 to 35 million less now than, presumably, last month?

snip

er no, the company running them was bust (Administration) I beleive I read, and the Administrators have valued the "assets" and the lender has taken them as security for the loans made.

the "Tycoon" was a Director of a Bankrupt Company.

probably always was from the very day he took the first loan.

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probably because the declines in asset value would breach stipulations in the terms of the loan stating that the LTV of the portfolio must remain above a certain level.the reality is that large empty ex factory space is virtually worthless,and whilst it remains standing,the owner must pay full rates to the local govt ponzi scheme.if the rents 5% of £7 mill,then the rates may well be circa 2.5%=£170,000 added to the loss of £350,000 in rental income,and RT properties is down £520,000 per annum.

added to that as SNACR has pointed out,the price of high st retail space is getting beaten down on renegotiations.Firms with scale(ie anchor stores) will be merciless when negotiating new rental terms

I nkow that HSBC began collateralising the overdraft facilites(ie turning them into loans) of small property firms round my way back in late 2008/9,so this has been going on some time.they're jsut moving up the food chain now.

Thanks - interesting.

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I doubt that RBS is singling out this one company - I suspect this is going on across the UK with them.

Then again, didn't they roll over stuff in Dubai? Probably because they could not get their hands physically on stuff in foreign climes I guess?

The bank is transferring all the properties except two into its own property company

Massive land grab going on . Will it be sold off at a discounted price? Oh noo! Keep them prices high, heaven forbid they get marked to market. :lol:

Edited by Sir John Steed

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looks like the bank put it into administration after demanding £14 mill in margin calls.although the article doesn't make that plainly clear and i can't be arsed to reread it

sure, its not clear.

but thats what a margin call does to a "tycoon" who has no money of his own and was "riding the wave".

Schroedingers Fat Cat.

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Massive land grab going on . Will it be sold off at a discounted price? Oh noo! Keep them prices high, heaven forbid they get marked to market. :lol:

M&S has been in that same building for 50 plus years - pretty amazed they do not own their own shop. They must have paid for it countless times over the decades.

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  • 244 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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      • up 5%



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