Controversial property tycoons announce £25m loss

Controversial property tycoons announce £25m loss


A property firm owned by a pair of infamous investment tycoons has recorded a second straight year of losses, running into tens of millions of pounds.

Rotch Property Group, owned by the Tchenguiz brothers Robert and Vincent, recorded losses of £25 million for the year to May 2009, according to accounts filed in Companies House last week.

Whilst this may strike many as an eye-watering sum, it is an improvement on the firm’s previous year’s losses, which reached £33 million.

The property company was worth about £4.5 billion at the height of the property boom.  

Robert and Vincent Tchenguiz are listed as managing directors and chairmen of the company, which is controlled by the Tchenguiz Family Trust – the vehicle that holds much of the Iraqi/Iranian family’s wealth, said to run into billions.

The brothers, who reside in Kensington, London, have faced a tumultuous couple of years amid the economic downturn. In January of this year they claimed that the failed Icelandic bank, Kaupthing, owed them £2.26 billion – despite them being amongst the bank’s biggest borrowers.

They have also been embroiled in a number of legal battles – most notoriously the divorce of their sister, Lisa Tchenguiz, from multimillionaire businessman Vivian Imerman. The brothers have come under fire for downloading 20,000 documents from Mr Imerman’s computer to help their sister in her claim for £100 million.

Additionally this week, a housing investment fund backed by Vincent Tchenguiz, is set to be liquidated. Sterling Assets UK Limited has been another victim of the collapse in commercial and residential property values. The creditors of the fund will vote today on whether to commence winding up proceedings.

The brothers recently sold six properties for £38 million, bringing the size of their investment portfolio down to £104 million. It was valued at £151 million in 2008.

The property tycoons are also currently paying interest of £15.8 million on loans of £174.2 million.

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