The commercial development portfolio of a property tycoon has passed to RBS after a huge write-down in value.
A Welsh
property investment mogul has seen his commercial developments passed to the Royal Bank of Scotland as his empire collapses.
The value of Roy Thomas' RT Properties portfolio was written down by £30-35 million by RBS, which has now taken the
commercial development assets out of receivership, reports the South Wales Evening Post.
Mr Thomas was naturally very disappointed with the outcome, claiming that this course of action was an over-reaction.
He told the publication: "For me it is absolutely devastating because I feel it is an unnecessary situation.
"The bank is transferring all the properties except two into its own property company. It is a tragedy. The business was successful."
Commercial property specialist Chris Tymanowski noted that this incident will make property investment firms take breach of a debt servicing covenant more seriously.
Research from the University of Leicester recently suggested that £50 billion of commercial property debt is heading for breach of covenant.
Posted by Tess Nelson
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