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Pytyr

What Is Foxtons Worth?

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http://business.timesonline.co.uk/tol/busi...icle3613890.ece

"Companies owned by private equity, such as Fat Face, the specialist retailer, Crest Nicholson, the housebuilder, and Foxtons and Countrywide, the estate agencies, are among those affected. The market value of the debt of all four has tumbled since the start of the credit crunch, suggesting that investors no longer believe the companies are worth as much as the total value of their borrowings – and implying that the equity is worth nothing."

Foxtons is now valued at 50p in the pound at current volumes?

"Foxtons, the London estate agent, which was sold to BC Partners for £390 million last July, is trading at about 50p in the pound, traders said."

“If you’re looking at today’s valuations, there’s no doubt that private equity is sitting on big losses. If the debt structures begin to blow up because the assets underperform, then those losses get crystallised because the assets get forced into a restructuring.”

So, if the volume of house sales declines Foxtons moves into "restructuring"?

Nice.

Anyone fancy a cheap Mini?

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This can't be! :o . People that work in the city are geniuses. They're the smartest, sharpest, hardest working super-humans on the planet and their are worth every penny of their vast salaries because they are infinitely more superior in every regard than mere mortals.

:unsure:

They bought Foxtons in 2007?.... :huh: ...... for how much?.... :blink:

....... :lol:

Muppets!

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This can't be! :o . People that work in the city are geniuses. They're the smartest, sharpest, hardest working super-humans on the planet and their are worth every penny of their vast salaries because they are infinitely more superior in every regard than mere mortals.

:unsure:

They bought Foxtons in 2007?.... :huh: ...... for how much?.... :blink:

....... :lol:

Muppets!

...the ex army officer, the founder who sold, is the genius... <_<

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This can't be! :o . People that work in the city are geniuses. They're the smartest, sharpest, hardest working super-humans on the planet and their are worth every penny of their vast salaries because they are infinitely more superior in every regard than mere mortals.

Yes, grieve with me. My unshakable faith in the city has been shaken by this unforeseen event! :rolleyes:

What can I possibly believe in now?

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This type of news is going to turn me into an early morning champagne drinker....

Interestingly, almost directly opposite Foxtons, Islington is a boarded up shopfront currently being fitted out as a new branch of Fat Face, one of the other highly leveraged (read dead in the water) purchases. Oh the irony.

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Guest X-QUORK

What does this actually mean in practical terms for Foxtons, Fat Face et al? Won't be able to raise any more credit? Cheap buy outs?

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Crest Nicholson, the British housebuilder, was bought for £715 million in 2007 by HBOS and Sir Tom Hunter’s West Coast Capital private equity firm. Its senior debt has tumbled to 50p in the pound and its junior and mezzanine debt is trading at between 40p and 50p. Senior debt of McCarthy & Stone, the retirement homebuilder, owned by West Coast Capital, the Reuben brothers and Bank of Scotland, is trading at 75p, and its junior mezzanine borrowings at 55p to 60p.

senior debt, mezzanine debt , junior mezzanine borrowings

In the good old days you had debt and you all knew where everybody stood.

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What does this actually mean in practical terms for Foxtons, Fat Face et al? Won't be able to raise any more credit? Cheap buy outs?

What it means is, there will be no sympathy, no emotion, no second thoughts on the depth and severity of the cost-cutting when it starts.

I worked for a small company a few years ago that was bought by a slightly larger firm after a bad year-end result. I remember sitting in a meeting with the new owner discussing plans to turn the results around. Every time we raised an objection the new boss said "I bought this place to make money. I intend to make 12%, WHERE'S MY 12%!". Quite agressive really, but you could see his point.

[edit:spelling]

Edited by Paddles

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Joke will be that if Foxtons break up you'll have dozens of little sharks as EAs who learnt their trade from the worst scam artists in the business. This is a golden opportunity for the govt to bring in proper regulation for property sales and investment. If you want to sell shares, pensions, mortgages or ISAs you at least need some exams and direct authorisation from the FSA. If you want to sell houses, the biggest thing most people buy in their life that you'll be paying for over at least 20 years, or for that matter Bulgarian ski lodges or flats in Dubai you need..... no GCSEs.

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This guy unless that was you had some foresight :) unlike us of course

1. To: war (#0)

Gee I guess this means the economy is about to collapse. ;)

Weird_Tolkienish_ Figure posted on 2007-09-27 15:49:10 ET Reply Trace

Anyway so the guy still owns the US ones - that has got to sting - hahahhaahahahahaha

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  • 293 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% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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