In 2011 Peverel then owned by the Tchenguiz Family Trust (now known as Firstport) collapsed into administration when they could no longer pay back loans.
After nearly 18 months in administration (and literally hours before they were due to be compulsorily wound up) they were rescued in a complex deal by Electra and Chamonix.
It is believed that Vincent Tchenguiz intended to buy back Peverel in what is known as a pre-pack arrangement and re-unite the freeholding and the property management companies.
It is understood that both Electra and Chamonix saw the rescue of Peverel as a short term measure to prevent its liquidation whilst Vincent Tchenguiz raised the finance to buy back Peverel.
Neither intended to own Peverel, but in rescuing Peverel and holding it for a short period they could make a substantial profit.
So for example, they could charge interest on the loans granted to Peverel as part of the rescue. These interest charges ranged from 9% -15%. this at a time when the Inter Bank Lending Rate was around 2.5 %.
Additionaly, profits could be made for "generous" consultancy and administration fees.
Whilst day to day trading was always profitable for Peverel/Firstport(given their business model how could it be anything but?) these extra charges swallowe up any profit. Effectively the "owners" are bleeding the company dry.
Peverel/Firstport have over the last two years managed to make substantial savings.
Part of the savings have come from making approximately 1,000 people redundant since coming out of administration. Part has come from efficiencies in administration by use of technology and more residents paying on line for example. Part is from Property Managers spending more time in the field and less in the office (or working unpaid overtime in their home)
Peverel/Firstport has managed to convert some of the "owners" loans into a bank loan which has saved them as considerable amount of money.
Against that though, the terms of the cheaper bank loans (thought to be in the 5%-7% interest zone) comes with a stipulation that the loan must reduce by £1,000,000 every 6 months, which is a very tough target.
Peverel/Firstport are reliant on former connected freeholders/ being embedded in the lease/aquisition of other management companies and/or agreements to manage new build properties at rates so artificially low that no other self respecting managing agent would tender at anywhere near these prices. This is a tactic known as "Lowballing" and is believed to have been used for a major development close to Wembley Stadium.
It is quite possible that up to 75% of all Peverel/Firstport management appointments are as a result of this, with only 25% being what may be termed genuine leaseholder derived appointments.
So it can be seen that be it the interest they are paying on loans, consultancy fees to the "owners" Peverel/Firstport have to find this money before they make a penny for themselves. And it is from the leaseholders and in particular the leaseholders who have had Peverel/Firstport forced on them that the extra money has to come from.
And that is why, Peverel/Firstport dream up every money making scheme they can think of? Be it work that is not needed, or the scope of works being "enhanced" or simply charging for work that was never done, Peverel/Firstport will do this, because they have to do it!
Shortly Peverel/Firstport will be publishing their accounts (which should make for interesting reading)
Figures by themselves can be very misleading. There are many opportunities to move figures around the group to make the bottom line look better than it really is.
Of course it should be born in mind that whatever the figures eventually turn out to be, the record fine they received for the Gibson Court Fire £460,000 with a 50 % discount for a "Guilty" plea may not be included in the published accounts.
