Tchenguiz brothers’ profit rockets after property sell off

Rotch Property Group, the investment vehicle of Robert and Vincent Tchenguiz, has seen its net profit more than double, according to the company’s latest annual results. Profit after tax rose from £3.4m to £8.7m in the 12 months to the end of May 2018. Revenue decreased by 6% from £8.6m to £8.1m. The company posted gross profit of £4.81m, broadly unchanged on the year. Rotch Property Group, which is controlled by the Tchenguiz family trust, sold two investment properties for £16m and a trading property for £575,000 during the year. The value of its investment property portfolio fell to £50.9m, down from £57.3m in 2018. The group’s loan-to-value ratio increased from 72.7% to 75.5%. Robert Tchenguiz said: “The directors are continuing to monitor the property market and will consider suitable acquisition and disposal opportunities as they become available.” However, the company warned its accounts liabilities now exceed assets by £43m. The accounts state: “The company has a net current liability of £33m and a net liability position of £10m. This is largely due to amounts owing to group and related companies of £110m, included in short-term creditors. Although the majority of the balances are not expected to be called within one year, they have been classified within short-term creditors due to the absence of formal loan agreements.” However, the group has “sufficient working capital for its needs for at least 12 months”. Earlier this year, Vincent Tchenguiz sold the remaining Hilton hotels in his Project Zinc portfolio out of administration for £246m. Nine regional Hilton hotels were acquired by several special purpose vehicles controlled by Vivion Investments. The trophy asset in the portfolio, the 601-bedroom Hilton London Kensington, was last year sold separately for £261.5m to Kensington Cola.   To send feedback, e-mail anna.ward@egi.co.uk or tweet @annaroxelana or @estatesgazette