“Shard of Glass” co-investor Simon Halabi is preparing for a court battle over an alleged share in profits from an £80m government portfolio.
The case against Cyprus-based investor Fieldmore Holdings will come to court some time after October 2006.
The property tycoon, who has a £750m fortune and owns a stake in the proposed 1,000ft-tall building at London Bridge, London SE1, claims that he is entitled to a 13.5% stake in Fieldmore. The company was set up in 1997 to buy the 27-strong Fiscal Properties government office portfolio from Quintain Estates & Development.
Halabi was involved in providing finance for the deal.
In a High Court claim that was initially lodged in 2000 against Fieldmore, its directors and InterTrusting, a trust company holding one-half of the group’s shares, Halabi alleges that Fieldmore is required to account for any profits realised from the portfolio, the majority of which has now been sold.
The £79.5m acquisition was substantially bankrolled by DEPFA Bank and Lehman Brothers, with the remaining sums borrowed from companies run by Irish businessmen David Maher and the late Brian Rhatigan.
Maher’s company, Folio Homes, Rhatigan, and his brother Anthony, have been added to the proceedings as interpleader defendants because of their interest in Fieldmore.
Halabi claims he is entitled to 135 shares in Fieldmore, held on his behalf through InterTrusting.
The dispute will deal with Halabi’s involvement in the deal and how profits from any individual sales of the properties will be allocated once the loans have been repaid.
The parties declined to release details of any profits on sales.
Under a court order, the parties agreed to appoint a joint accounting expert, who will produce a written report by 31 May.
The parties were also ordered to “use their best endeavours” to mediate the dispute by 16 June.
References: EGi Legal News 03/04/06
