As we head into 2014 pressure will continue to mount for Peverel.
The financial implications of losing so many developments in 2013 (more to follow this year) will take effect. To counter this Peverel will introduce some savage cost cutting, which will worsen the already dire service they provide, and involve redundancies in the administration departments.
That Peverel are so dependent on a single source of appointments to manage and that the source for the appointments is itself in severe financial difficulties does not bode well for Peverel.
Worse for Peverel is that to a very large degree their assets are founded on the value put on their management contracts. Losing contracts not only restricts Peverel's income, but crucially reduces their assets. That would then lead to Peverel's asset value no longer covering their loans. This is broadly the situation that the Tchenguiz Family Trust (E&M/ Fairhold/Proxima) property portfolio find themselves in.
Should the SFO/ Tchenguiz court case not be settled out of court, all the Tchenguiz financial problems wil be exposed to the public.
At present, About Peverel understands that the freeholding companies that form part of the TFT Group, are trading with the consent of the banks in order to keep value in the portfolio. It has been suggested that in 2012, even on the most optimistic valuations the portfolio had a loan to value ratio of up to 134%.
That means if a person owned a home valued at £200,000, they would have a mortgage of £268,000.
What does not help TFT is that Charter Quay purchased their freehold at 28% of the valuation put on it by TFT.
That means if a person owned a home that had been valued at £200,000, they would now find the true value if they sold it would be £56,000.
They still have a mortgage of £268,000.
This explains the kind of mess that those that have appointed Peverel to manage.
Realising this, possibly explains why the "new owners" are taking so much money out of Peverel.
