Major property mogul brands RBS receivership as “unnecessary tragedy”

Major property mogul brands RBS receivership as “unnecessary tragedy”



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A major property mogul is contesting a principal lender’s decision to write down his property portfolio by £30 million to £35 million.

RT Properties was taken into receivership by the Royal Bank of Scotland on Tuesday, after the bank took over all but two of property baron Roy Thomas’ assets.
The company ran into trouble after it was charged a fixed rate loan breakage of £14.8 million by RBS.
Speaking to Welsh newspaper the Evening Post, Mr Thomas said: "I'm heart-broken, there was no need for this to happen, in my view.”
Mr Thomas owned Swansea Airport and Swansea’s Dragon Hotel and Marks and Spencer store. Overall, in Swansea alone, RT Properties ran a portfolio of 25 properties and in Cardiff nine properties.
Admitting that the situation was ‘complex’, Mr Thomas said: “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.
“It was letting to small businesses on flexible terms. It leaves private investors and creditors out in the cold, and the whole thing is unnecessary.”
According to Mr Thomas, the incomes from his properties had been improving by over £1 million on 39 lettings in the 24 months leading up to March 2010.
He said: “I wasn't hiding behind a limited company. This was all my own money up until recently, when the clampers were put on by the bank. It is absolutely devastating to be letting everybody down.”
Mr Thomas hit headlines only recently when he announced his rental space, Alexandra House, was to be rented to Virgin Atlantic and would bring 200 jobs to Swansea over the next two years.
The property magnate is currently in talks with RBS and still retains ownership of two of his properties, including a factory site he bought for around £7 million in 2007.

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