Rebel bondholders to launch fund to snap up toxic assets

In the freshest hint of a property recovery, two rebel bond investors yesterday revealed their plans to raise up to &pound;250m through a stock market flotation to take advantage of the cheap prices in the bombed out market for bricks and mortar.<br /><br />Tony Wardle and Richard Tice, who launched a shareholder campaign against commercial property group Brixton, are set to build a war chest to snap up toxic property assets.<br /><br />City firm Evolution Securities is advising on the cash call.<br /><br />The new fund, believed to be named Project Lono, is expected to debut on the Aim market by the end of this year. <br /><br />The duo have been sounding out potential investors, and encouraged by positive noises, have doubled the size of the fundraising. <br /><br />Tice and Wardle follow in the footsteps of one of the country&rsquo;s wealthiest property entrepreneurs, Nick Leslau, who launched his own Max Property Fund on Aim earlier this year to take advantage of the depressed property market.<br /><br />In April, Tice and Wardle acquired bonds in industrial developer Brixton for less than half of face value, just before a takeover offer from rival firm Segro. <br />The rebellion forced Segro to sweeten its offer, leading to a 60 per cent return in five months.