Russian investor Pavel Lisitsin today won his £1.4m high court damages claim over a development site near Reading, Berkshire. Deputy Judge V Rose found in favour of Lisitsin’s company, Ludsin Overseas, in his claim against Wharf Land Investments; one of its directors, Douglas Maggs; agent Eco3 Capital, and Eco3’s directors Alexander Shadrin and Charles Balfour. The judge found them jointly and severally liable to pay Ludsin £1.4m in damages. The judge said: “I find that Dr Shadrin and Eco3 did fraudulently misrepresent to Ludsin the nature of the transaction in which Ludsin was investing £2m. “I also find that in making those misrepresentations, Dr Shadrin and Eco3 acted as agents for Wharf Land Investments, Mr Maggs and Mr Balfour and that those defendants knew about and connived in the making of those misrepresentations. She added: “I conclude that Mr Maggs and Mr Balfour were fully aware of and complicit in the fact that Dr Shadrin had not disclosed the two-tier structure of the deal to Mr Lisitsin and that so far as Mr Lisitsin was concerned, the deal was a straightforward purchase of the site from Hicks Persimmon by Sandford Farm Property for about £12.3m.” Lisitsin, through his company Ludsin Overseas, claimed to have invested £2m to help fund the £12.3m purchase of Sandford Farm near Reading. However, he alleges that the cash was instead used to buy the site for £9.3m before immediately being sold on to him and other investors for the higher price. The SPV that owned the land was later placed in receivership, and Lisitsin lost his investment. The farm was then sold to Woodley Developments, of which Lisitsin claims Maggs and Balfour are directors. After securing consent for residential redevelopment, the site was sold to housebuilder Taylor Wimpey for £27m. Samantha.McClary@estatesgazette.com
Russian investor Pavel Lisitsin today won his £1.4m high court damages claim over a development site near Reading, Berkshire.
Deputy Judge V Rose found in favour of Lisitsin’s company, Ludsin Overseas, in his claim against Wharf Land Investments; one of its directors, Douglas Maggs; agent Eco3 Capital, and Eco3’s directors Alexander Shadrin and Charles Balfour.
The judge found them jointly and severally liable to pay Ludsin £1.4m in damages.
The judge said: “I find that Dr Shadrin and Eco3 did fraudulently misrepresent to Ludsin the nature of the transaction in which Ludsin was investing £2m.
“I also find that in making those misrepresentations, Dr Shadrin and Eco3 acted as agents for Wharf Land Investments, Mr Maggs and Mr Balfour and that those defendants knew about and connived in the making of those misrepresentations.
She added: “I conclude that Mr Maggs and Mr Balfour were fully aware of and complicit in the fact that Dr Shadrin had not disclosed the two-tier structure of the deal to Mr Lisitsin and that so far as Mr Lisitsin was concerned, the deal was a straightforward purchase of the site from Hicks Persimmon by Sandford Farm Property for about £12.3m.”
Lisitsin, through his company Ludsin Overseas, claimed to have invested £2m to help fund the £12.3m purchase of Sandford Farm near Reading. However, he alleges that the cash was instead used to buy the site for £9.3m before immediately being sold on to him and other investors for the higher price.
The SPV that owned the land was later placed in receivership, and Lisitsin lost his investment. The farm was then sold to Woodley Developments, of which Lisitsin claims Maggs and Balfour are directors.
After securing consent for residential redevelopment, the site was sold to housebuilder Taylor Wimpey for £27m.
Samantha.McClary@estatesgazette.com
