The well-known property developer brothers Nick and Christian Candy may count foreign royalty and famous celebrities amongst their friends, but their current predicament won’t win them much sympathy amongst the credit-crunched masses.
It has been reported in the Telegraph newspaper that the self-made billionaire brothers’ consortium has defaulted on a $365.5 million loan to buy an eight-acre Beverly Hills site set to be a luxury apartment complex.
The consortium paid $500 million for it in April 2007, but with US property prices having plunged since then, the property will be sold to the highest bidder at an auction later this week. However, doubts have been cast as to the likelihood of finding a buyer, if one is not found the bank will take control.
Although this is a painful turn of events for the slick Nick and Christian Candy, few in the property sector are surprised. According to industry experts, the brothers grossly overpaid on the property – which was sold only three years earlier for $33.5 million.
A specialist in luxury Beverly Hills properties, Jeff Hyland, of Hilton Hyland, told the newspaper: “Even three years ago everybody was wondering what these guys were up to. Now, with the economy in the state it's in, no way is the site worth anywhere near the $365 million which is owed the banks.”
Drew Mandile, of Sotheby's International Real Estate, added: “There were a lot of high-end condos going up at the time, and not enough buyers even then, before the subprime and credit crunch. The Candys didn't do their homework. They let their egos get in the way of the better judgment.”
A spokesman for the Candy brothers has blamed the collapse of Icelandic bank Kaupthing for the Beverly Hills failure, saying that the brothers were “disappointed” but “in very good shape”.
Well, with an estimated fortune of £750 million and two yachts between them, as well as two limousines, a helicopter, six luxury cars, a £200 million duplex in Monaco and four other properties dotted around London and the rest of Europe, you would hope that the Candy brothers are able to keep things in perspective…
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