It is widely expected that October 9th 2015 will see Fairhold Finance Ltd default on inter- group loans. This is in addition to other inter- group loans that are already in default. Plans are in place to manage the impending default, and there is a 2 year period of grace to allow further property portfolio sales.
In the last year Fairhold Finance Ltd have re-valued their assets. The value has been increased by £93m to £927m. It should be remembered that the sale of Charter Quay established a true value of around 1/3rd of the claimed valuation.
In addition to the approximately 15 Fairhold connected companies already sold off, a further 37 will be liable to being sold off.
This will greatly reduce the once "mighty" Tchenguiz portfolio to a fraction of its size.
In "notes to the accounts" Fairhold Finance Ltd" have conceeded that income from house managers flats are under pressure as they have had to reduce rental rates for them.
Of great significance regarding any sale is the admission that" Long Leaseholds cannot be sold separately from the estate of freehold residuary interests in which they are located, unless the management agreement is terminated.
Typically such an arrangement would be found when a developer has sold the freehold and a tri-partite lease has been created including the managing agent.
Residents should look out for any "customer satisfaction surveys" as Fairhold would have to dismiss Peverel/Firstport in order to realise their assets.
