Recently in Property people Category

King's Cross must feel like the countryside to City agent Tony Gibbon. But last week's hiring of the pugnacious BH2 partner on a no-deal no-fee basis by the developers of the 67-acre site makes some sense. For the King's Cross Central Partnership mainstays, Hermes and Argent, have a dilemma.

The Partnership has already spent circa £50m prepping the whole site. They are unkeen to take on all the upfront risk development risk of this 400 000 sq ft block, even though Sainsbury's are very keen to take 300 000 sq ft for a new headquarters. The problem is that Sainsbury's is not keen to fully commit until they can see a way out of the lease on their Holborn HQ. That does not expire until 2013. 

                                             King's Cross Central CGI

So, is there anyone out there keen to forward fund the offices - and how can it be done? Gibbon failed to impress when he pitched for the King's Cross letting. But he has worked for Argent before and impressed them with his world-wide contacts and an ability to stitch together some very tricky deals. So, why not give him a go at coming up with some fresh funding ideas for King's Cross?

That said, the clock is ticking for Gibbon. Investors are just starting to become more risk-tolerant of development and more optimistic about end values. So the prospect of another bright spark simply wandering through Argent's door in Piccadilly grows as the economy brightens. But this is a tough one: come on Tony, you can do it.

 Good to see the former chief operating officer of Land Securities return from prolonged royal duties. The FT says today that Mark Collins is joining the Lloyds Banking Group to help with the restructuring of its loan book; presumably the appalling property loans acquired when Lloyds took over HBOS.

In 2006 Collins was persuaded by former LandSecs CEO Ian Henderson to set up a property fund called Tellesma, which would benefit charities backed by the Prince of Wales. What could go wrong?  There was royal patronage, plus the support of Fleming's private bank, plus Ian Henderson as chairman.

It all went wrong. The Prince wanted to back green-only developments. Tellesma spent so long finding anything suitable the market went from under them. Nobody would then put any money in, not even the usual suspects from the Middle East.

To prevent the embarrassment of the LLP fund being wound up by administrators, Flemings quietly paid off the debts.

The move by the former COO of LandSecs to Lloyds signals the final demise of an idea dreamed up by some very powerful property folk after a discreet dinner or two with HRH at Clarence House.  Not many will admit to their involvement now.

The widely-liked Collins now has a proper job: helping sort out the right royal mess left behind by Peter Cummings, head of property lending at HBOS.  Now, there was a man who found it very easy to invest in property.

Today's Evening Standard column contains the tale of Sir Stuart Lipton's attempts to rescue the Commonwealth Institute (pictured right) in Kensington High Street by bringing in the Design Museum and giving them a £20m dowry to convert the listed hall: all paid for by building 62 very, very posh flats in the garden.

This is the first viable scheme produced in 20 years to rescue the Commonwealth Institute. There is a credible developer, a world class architect and a workable plan to reuse a hall that finally closed in 2004.

And the reaction to the scheme that goes before Kensington & Chelsea planning committee in a couple of weeks? Almost as if Barratt had applied to build 262 flats and turn the hall into an antique market. During a walk around the site last month Sir Stuart did well to hide his frustration.

There is only one place to go this morning if you are interested in the loans given by Icelandic Bank Kaupthing. That is a 210-page confidential presentation dated 25^th September 2008, which has been posted on the Wikileaks site.

It gives details of loans to 205 different organisations who had borrowed between 45 and 1250 million Euros.  Not long after this internal report was compiled the bank collapsed.

Robert Tchenguiz and his brother Vincent feature. Robert had a loan of 1082m Euros with an LTV of 98% at the time. Vincent had borrowed 208m Euros, secured against ground rent income.

The best known loan is of course that given to Nick and Christian Candy. In September 2008 the outstanding amount was 256m Euros - about £220m.  

Kaupthing say the site was valued at £355m by Savills in November 2007. In September 2008 the bank estimated the value had fallen to just about the level of the loan.

Don't even ask what the cleared 3 acres north of Oxford Street is worth today. You will know soon enough, for a deal to either joint venture or sell NOHO is being negotiated.

Gerald Ronson was in a cheerful mood yesterday at the ceremony to lower a time capsule into the foundations of the 46-storey Heron tower.

(There is a short account of the event in today's Standard column.) 

But Ronson's cheer may have something to do with the success of his book "Leading from the Front", which has a couple of almost-libellous chapters about the Guinness affair.

The book has sold over 6,500 copies, says Ronson and has actually made money for his charitable foundation.

But the real reason for satisfaction is perhaps because Ronson's book, he says, is "higher up the business best seller list than Alan Sugar's."

PS: anyone looking for another good read should try Le Deal This is a wonderfully written tale by former BAA McArthur Glenn director Byrne Murphy about the troubles they faced getting permission for a retail outlet in Northern France. You will laugh, you will cry - and you will never, ever, develop in France.

Today's good news is that Francis Salway will keep his job as chief executive of Land Securities. There are glowing stories in the Times Financial Times and Daily Telegraph, all approving of Salway's decision to start buying (and presumably stop selling) property.  

His decision is seen as an important endorsement that the market is turning. The appointment of the eminently sensible Chris Bartram as a director is also seen as a good thing. 

The sense that the saintly Salway was under threat  a month ago from his scary chairman Alison Carnwath for not coming up with a clear strategy feels like it has evaporated. 

With his very ambitious rival Mike Hussey gone and a plan to begin to build up the ravaged portfolio again, it looks like the 51-year old could be running LandSecs for a few more years yet.

Poor Prince Andrew: Britain's roving trade ambassador gets it in the neck from the now terribly excitable Daily Telegraph for a 50% rise in the cost of his trips to £207 000 last year. But the paper fails to credit "Air Miles Andy," as it calls him, with helping seal the deal that will transform London's skyline.  It is not generally known, but the Prince played a small part in persuading the Qatari's to back the Shard.  HRH's intervention apparently helped add vital credibility when it came to turning Irvine Sellar's nine year dream into reality. Not surprising really. The Qatari's are always susceptible to royal intervention. Ask Andy's brother. Charles got them to abandon Chelsea Barracks.