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Realistbear

" Jon Hunt ( Foxtons) Is The Luckiest Man In Britain "

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http://www.telegraph.co.uk/money/main.jhtm.../cnbanks119.xml

Banks see big losses as music stops

By Helen Power, Sunday Telegraph

Last Updated: 2:15am BST 19/08/2007

Foxtons' founder Jon Hunt is the luckiest man in Britain
. Hunt sold his estate agency to private equity house BC Partners in July for £390m at the height of the cheap debt-fuelled buyout frenzy.
But turmoil in the global financial markets has since hit investors' appetite for debt in private equity-owned companies - particularly those like Foxtons and its larger rival Countrywide which are exposed to a slowing property market - leaving the banks who financed such deals holding the baby.
It is understood BC's financial backers - Bank of America and Japanese bank Mizuho - have had to cut the price of Foxtons' debt in order to sell on some tranches. Sources close to the banks said they sold tranches at 98.5p in the pound last week, but distressed investors said the debt had been offered at closer to 80p in the pound.
For those who bought into Countrywide, the situation is even worse...../
City sources said Citigroup, another of the
banks stuck with Boots' debt
, has offered to pay $1bn to restructure the debt backing the world's biggest buyout, Texas Pacific Group's and KKR's $45bn acquisition of TXU, the utility. Earlier this month the banks backing the buyout, led by Citi, were reported to have said they would pay a $1bn break fee to extricate themselves from the deal. It is thought the banking syndicate has now offered to stay on board, but pay the Texan energy giant a similar amount to renegotiate the terms of the debt to make it possible for them to resell it.
:o

EAs are feeling the harsh chill winds of Great Crash 2 as it moves up a notch to a Tropical Storm. We could see a category 5 hurricane develop as winter sets in.

BTL anyone? :o:o:o

Edited by Realistbear

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http://www.telegraph.co.uk/money/main.jhtm.../cnbanks119.xml

Banks see big losses as music stops

By Helen Power, Sunday Telegraph

Last Updated: 2:15am BST 19/08/2007

Foxtons' founder Jon Hunt is the luckiest man in Britain
. Hunt sold his estate agency to private equity house BC Partners in July for £390m at the height of the cheap debt-fuelled buyout frenzy.
But turmoil in the global financial markets has since hit investors' appetite for debt in private equity-owned companies - particularly those like Foxtons and its larger rival Countrywide which are exposed to a slowing property market - leaving the banks who financed such deals holding the baby.
It is understood BC's financial backers - Bank of America and Japanese bank Mizuho - have had to cut the price of Foxtons' debt in order to sell on some tranches. Sources close to the banks said they sold tranches at 98.5p in the pound last week, but distressed investors said the debt had been offered at closer to 80p in the pound.
For those who bought into Countrywide, the situation is even worse...../
City sources said Citigroup, another of the
banks stuck with Boots' debt
, has offered to pay $1bn to restructure the debt backing the world's biggest buyout, Texas Pacific Group's and KKR's $45bn acquisition of TXU, the utility. Earlier this month the banks backing the buyout, led by Citi, were reported to have said they would pay a $1bn break fee to extricate themselves from the deal. It is thought the banking syndicate has now offered to stay on board, but pay the Texan energy giant a similar amount to renegotiate the terms of the debt to make it possible for them to resell it.
:o

EAs are feeling the harsh chill winds of Great Crash 2 as it moves up a notch to a Tropical Storm. We could see a category 5 hurricane develop as winter sets in.

BTL anyone? :o:o:o

Hunt was not lucky, just astute enough to see what is coming and get out with near perfect timing! His move is a warning to all bulls out there - an uber-bull heads for the hills (with stuffed pockets)!

TD

Edited by The Dragon

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Does noone remember the fancy prices that BS and banks were paying for EA during the last boom? The boardrooms of the financial institutions all decided like leemings, for reasons of synergy, they had to own estate agencies. So a small EA with a few lease hold shops would be offered millions. After a few years most of the institutions had sold off the EA they had paid millions for. What did they sell for? In most cases they almost gave them away!

Nothing changes - nobody learns. (Well almost nobody)

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Seeing a big EA get out when he did could not have sent any clearer warning to the housing market that it was over. I wonder how long now before we start seeing a few EAs shut up shop?

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"It's not luck, Todd."

Kind of depressing to see it reported as such by the Telegraph, though. The idea that the music didn't have to stop shouldn't be reinforced IMO.

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It wasn't just Foxtons who could smell the coffee, remember this moosh:

http://www.ft.com/cms/s/54a9d5b6-9b98-11db...00779e2340.html

Financial Times
Property agent calls top of house market
By Matthew Richards
Published: January 4 2007 02:00 | Last updated: January 4 2007 02:00
A leading estate agent has called the top of the property market, claiming an influx of sellers "motivated by greed" is increasing the supply of homes for sale and creating a vicious circle that will send prices lower in 2007.
Henry Pryor, founder of property website prime-move.com, says people are looking at the prices their neighbours' are getting for their houses and deciding to follow suit. "They are saying, 'we should cash in our chips'," Mr Pryor said.
"We may look back and say the fourth quarter of 2006 was the peak," he said.
Mr Pryor, who has called the property market correctly in the past, said his website had details on 800,000 properties, making it the biggest website for UK property sales. He said November saw the start of an increase in homeowners selling their property and moving to a second home or rented accommodation in order to cash out at what they believe is the top of the market...../
Edited by Realistbear

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Of course Jon Hunt knows where all the skeletons are. Remember the BBC undercover report on Foxtons - that had it all - falsinfing documents, blatant ramping of prices and misleading the vendor into selling at a too low price. Admittedly all businesses have their systems for trading and making profits but this was too close to the bone to be acceptable. No wonder he bailed out - be intersting to see how the buy-out team get on. :lol:

But being a clever b**ger he will probably buy it back in five years time for £5m!!

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For those who bought into Countrywide, the situation is even worse...../

<snipped by RB>

City sources said Citigroup, another of the banks stuck with Boots' debt...

You cut out a good bit there RB! Foxtons have a huge slice of the London market. However Countrywide Assured are even larger, and spread right across the country. They own a plethora of EA chains such as Taylors, Bairstow Eves and John D Wood.

For me, this is the exciting bit:

“For those who bought into Countrywide, the situation is even worse. Debt in the £1.05bn estate agency has recently traded at 85 per cent of its face value over concerns Apollo Management, the US buyout fund which took it private in May, has saddled it with debt. Apollo's backer Credit Suisse was able to get the debt off its books before sub-prime contagion shut down the lending market for corporate debt, but secondary investors such as hedge funds and pension funds have lost out. Banks are slashing prices for corporate debt raised in better times they are now unable to sell. The riskiest debt - in Alliance Boots, which was bought out by US private equity group Kohlberg Kravis Roberts (KKR) in June - is said to be significantly discounted at 94p in the pound. Even so, the nine banks who underwrote the £11bn Boots deal, led by Deutsche Bank, JPMorgan and Unicredit, have been unable to sell a single penny of the £9bn debt. Difficulties have been compounded by the fact that KKR raised the loan under one of the last covenant-lite contracts which give lenders almost no security and which bankers say will not be used for new deals.”

Edited by Timm

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What about his brother.... Mike Hunt....

No word of a lie, that's who I asked for when I visited the South Ken branch in 93/94 for an interview. Needless to say, I did not get the job.

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The man's a charlatan, made his stash from the unsuspecting and now he's off. Probably to his own island served g+t in gold cups.

A slimier collection of ringpieces you never did meet at Foxtons, hope something bad happens to MrSlimeball now hes run off with the loot, also worst wishes to whom ever owns it now and infinite bad luck to all the pox brained lowlifes that still work there.

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