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Phoenix Ownership - Rob says FTFFA (Part 1)

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Posted July 11, 2011 09:57 · last edited March 18, 2021 07:33

And as for Burgess, let's look at the facts.  Terry is supposedly worth about 200m (or was).  Let's say he's probably worth on paper 100m with recent disposals and falls in property values - but with leverage that might be much lower, maybe even as low as 20m but possibly much lower, there are 2-3 mortgages attached to most of these propertues which means he will see very little from most disposals. 
 
He sells about 35m worth of properties (i.e. take that off the 100m) - but he receives $0 from that disposal.  And this is for a trophy asset.  So his total asset pool drops by about a third but he gets no cash.  That sale has clearly been forced through by his bankers.
 
Now you try and tell me that isn't a concern for his business and therefore for the Phoenix.
 
TX, Deloras - this is not negative spin.  These are real, serious issues for his portfolio.  Terry is a property investor/developer.  You don't go round selling buildings and getting nothing for them if you don't have to.
 
Burgess is absolutely right to be highlighting these issues because they are serious!!

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Unknown editor edited March 18, 2021 07:33

And as for Burgess, let's look at the facts.  Terry is supposedly worth about 200m (or was).  Let's say he's probably worth on paper 100m with recent disposals and falls in property values - but with leverage that might be much lower, maybe even as low as 20m but possibly much lower, there are 2-3 mortgages attached to most of these propertues which means he will see very little from most disposals. 

 
He sells about 35m worth of properties (i.e. take that off the 100m) - but he receives $0 from that disposal.  And this is for a trophy asset.  So his total asset pool drops by about a third but he gets no cash.  That sale has clearly been forced through by his bankers.
 
Now you try and tell me that isn't a concern for his business and therefore for the Phoenix.
 
TX, Deloras - this is not negative spin.  These are real, serious issues for his portfolio.  Terry is a property investor/developer.  You don't go round selling buildings and getting nothing for them if you don't have to.
 
Burgess is absolutely right to be highlighting these issues because they are serious!!