What happens when you get greedy

[DimPrawn]

http://www.telegraph.co.uk/finance/n...debt-pile.html

Simon Halabi, one of Britain's best known property tycoons, is seeking to refinance £1.4bn of debts in an attempt to avoid defaulting on loans he has on nine London buildings.

The Syrian-born entrepreneur, whose assets are thought to have dropped in value by an estimated £1bn in the property slump, has until October to repay the debt. The loan is thought to be the largest securitised real estate loan expiring this year, according to data compiled by Bloomberg.

Analysts at rating agency Moody's warned on Monday that Mr Halabi is unlikely to be able to meet his obligations. "It's very likely the loan will default," said Alexander Zeidler, an analyst based in London. "We don't think too many institutions will be willing to lend the amount of money needed to refinance."

Mr Halabi did not return calls requesting comment.



He should have stuck to CyberToryshire.

[BrilloPad]

So finally we might see some big falls in the LOndon property market which has until recently fared relatively well.

[Moscow Mule]

So finally we might see some big falls in the LOndon property market which has until recently fared relatively well.

Sounds like commercial buildings if nine of them are worth 1.4bn. Not sure how that will translate to the homes market (if somebody could enlighten me?).

[BrilloPad]

Sounds like commercial buildings if nine of them are worth 1.4bn. Not sure how that will translate to the homes market (if somebody could enlighten me?).

errr : good point so it will make very little difference.

I am still suprised house prices in LOndon have not fallen more : with all those bankers being laid off it must have a big effect at some point?

Though I hear flats in docklands are hard to rent/sell.

[DimPrawn]

It's cos London is so cool 'innit? I mean where else can you get to mingle with the likes of sasguru? Such class comes at a price.

[Gonzo]

Though I hear flats in docklands are hard to rent/sell.

After I left in December, the rented flat in Docklands that I was in was refurbished, the rent was dropped 15%, and it still remained empty for three months.

After that it was put up for sale with an asking price 10% below the price it would have achieved three years ago.

It is now showing as "Sale Agreed" after one week on the market.

Obviously I don't know what price was agreed, or what chances there are of completing the transaction, but it moved.

Lets hope it is not another investor who wants to rent it out

[Cyberman]

errr : good point so it will make very little difference.

I am still suprised house prices in LOndon have not fallen more : with all those bankers being laid off it must have a big effect at some point?

Though I hear flats in docklands are hard to rent/sell.

Even if people are out of work they still need somewhere to live so the private housing market is totally different to the commercial property market. If a business goes bust it is highly likely that the property they have occupied will then remain empty as the recession worsens and the owner in turn will go bust as he cannot finance his loan repayments. This obviously has a massive knock-on effect on banks' debts.