Phillip Nelson and Simon Bakewell propco in administration after loan breach
The founding partners of Nelson Bakewell have fallen victim to the downturn.
A company run by seasoned investors Phillip Nelson and Simon Bakewell has been put into administration after breaching a loan agreement when it failed to sell £100m worth of property.
The highly geared Westport Land is part of the Trehaven Group that is operated by Nelson and Bakewell, alongside fellow directors William Woodward-Fisher and former NB agent Charles Allison.
Trehaven, which posted a £27m turnover and a £492,793 net loss for 2006, is unaffected.
Westport arranged a £95m loan from Capmark Bank Europe, previously GMAC Commercial Mortgage Bank, in early 2006. Its accounts for the year to 31 December 2006 show that it accumulated around £100m of assets.
But a proposed sale of those assets collapsed last year and when Westport was unable to refinance its debt, it fell in breach of its loan agreement.
Malcolm Shierson, partner at Grant Thornton, which was appointed to handle Westport’s administration in December, said: “Part of the debt was scheduled to be refinanced in September, but that became a victim of the credit crunch. That failure amounted to a breach.”
Several other banks – as well as security trustee Capmark – are also affected.
Shierson confirmed that Westport’s ultimate parent, Trehaven, and its other group companies were not liable for its debts: “It’s like amputating a leg. The rest of the body carries on.”
Shierson said he was already in talks with prospective purchasers for the properties.
The market is expecting a flurry of forced sales by investors who borrowed heavily in the rising market and who have now seen the value of their investments fall.
“We are aware of a number of other property situations approaching distress,” said Shierson. “There has obviously been an adjustment in values, which means that this is unlikely to be an isolated situation.”
Nelson and Bakewell, who declined to comment, founded Nelson Bakewell (now NB Real Estate) in 1982. They are now external shareholders, owning around 16%. Bakewell is a non-executive director.
Westport’s other directors were John Chalk and Roger Davies. Two others, Oliver Burge and Michael Maskey, resigned in 2007.
Westport land
Properties in the forced sale:
? Burlington House, Botleigh Grange Business Park, Southampton, let to solicitor Clarke Wilmott and asset finance company State Securities
? Europa House, Bartley Wood Business Park, Hampshire, let to BMW for its financial services HQ
? 800 Park Avenue, Aztec West, Bristol
? land and buildings on Walton Street, Aylesbury
? two properties in Cheshunt and Portsmouth.
