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Big Crash -Targetfollow

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Norwich firm Targetfollow,a large Norwich developer is on the skids.A £230million loan was defaulted in July and a £400m one becomes repayable today.The company claims assets of £680m,no doubt on bumped up valuations.The banks say their assets are around £400m ooopps!The owner Mr.Naghshineh blames interest rates of 6%.

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The riverside flat developments are all horrible. I don't know which ones they own, but they're all horrible. The only nice flats in Norwich are the ones just south around the old hospital.

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Norwich property company Targetfollow defaulted on a £230million debt in July and a £400m one becomes repayable today.The company claims assets of £680m but the banks say these arte only £400m.The company's owner Mr.Naghshineh blames 6% interest costs.Looks like they are going tubeside.Some major flats developments by the river in Norwich.

You don't say?

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He was Woolworths' largest private shareholder at the time it went under.

His business story is covered by Property Week [dated 2005]. Doesn't look like he ever paused in his business expansion plans through the years. Banks happy to lend multi millions to his company.

http://www.propertyweek.com/the-organic-developer/3049470.article

The focus on development is designed to make Targetfollow more profitable. ‘Our cashflow is weak,’ Naghshineh reveals. ‘Our interest rate bill and rental income are equal, so we have to live off our profits.’

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Looks like another hit for the TAx payer...

Targetfollow in administration today

pheonix arises?

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Our council is somehow finding £15 million to buy one of Targetfollow's holdings.

Last time I went to Grand Central was a few years ago. There's a large indoor bowling place, cinema, a leisure centra and swimming pool which might already be council subsidised. Some units including Pizza Hut nearest the main A6 road side, but I was told in the past other shopping units inside the plaza area proper didn't do so well because not so much footfall.

The council seem to think Grand Central is important for jobs, being a gateway and stepping in to make it happen where the private sector won't. I'm not convinced about their plans or their involvement.

Property Week

22 December 2010

Stockport Council is set to buy the Grand Central leisure complex in Greater Manchester from the collapsed subsidiaries of property company Targetfollow, under plans to attract £100m of private money for its redevelopment.
"If we don't buy it, there's a chance that someone else will, and sit on it for ten years. By doing this we can gain control of Stockport's key gateway asset, which is strategically vital in us trying to develop a high quality corridor of office space.

Link from Google cache because premium link story no longer available free or without registration

http://webcache.goog...n&ct=clnk&gl=uk

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Stockport council has an affluent demographic that dont mind being taxed loads. The council can afford it. They have plenty of cashed stashed away for this financial year, and the next iirc.

That part of the town centre kind of makes some sense for them, esp now that the plaza area is done.

I personally disagree but it makes sense.

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I personally disagree but it makes sense.

It's away from the main town centre shopping area though. If the plaza is all done as you say, does it get busy there on an average shopping day? Are all the units in the plaza let out?

It could make sense and I wouldn't mind too much if the deal washes its face. Walked up to the indoor bowling place at Grand Central in 2008 whilst our car was in for a minor repair. It was surprisingly busy for a recession with lots of people able to afford £7 each for a game. Maybe the council is expecting that to continue.

Said I was unconvinced, especially with an argument "If we don't buy it, there's a chance that someone else will, and sit on it for ten years." Can't help but be wary when councils get too involved in what ordinarily would be run by the private sector. They are the council and not property speculators, investors or developers.

Now they are owners of these buildings so they have to keep them maintained? It is right next to the main train station which is one sort of advantage but 'Stockport's key gateway asset' is pushing it. They want to develop further office space at Grand Central? That will require private money to build it, which is coming from where exactly, and isn't there surplus office space enough already in the area?

A relative told me they rang Stockport Council a few weeks before Christmas and the girl she spoke to was really upset saying their department had all been made redundant. Told her not to tell anyone as it hadn't yet been publically announced.

Stockport council has revealed it must save up to £78m over the next four years. The town hall is the last local authority in Greater Manchester to spell out the impact of savage government cuts. Council chiefs will have to find £20m savings in one year alone. But they have declined to say exactly where the axe will fall.

more at Stockport Express, 01 November, 2010.

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