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 £250m through a stock market flotation to take advantage of the cheap prices in the bombed out market for bricks and mortar.
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.
City firm Evolution Securities is advising on the cash call.
The new fund, believed to be named Project Lono, is expected to debut on the Aim market by the end of this year.
The duo have been sounding out potential investors, and encouraged by positive noises, have doubled the size of the fundraising.
Tice and Wardle follow in the footsteps of one of the country’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.
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.
The rebellion forced Segro to sweeten its offer, leading to a 60 per cent return in five months.