Ricoh was worth £6.4m late 2012 based on no CCFC rent. Council court papers reveal a council report had stated this according to Les Reid.
What would it be worth now? What should SISU offer if this is true?
Does this mean that ACL are in negative equity?
Ricoh was worth £6.4m late 2012 based on no CCFC rent. Council court papers reveal a council report had stated this according to Les Reid.
What would it be worth now? What should SISU offer if this is true?
If it is only worth £6.4m then doesn't it mean they are in negative equity? I wonder who has given the figure of what it is worth.
If the council do value it at £6.4m then why should SISU pay off the mortgage for them if it isn't worth that?
If I had a house worth 100,000 but my mortgage was for 2.4 million it doesn't mean the house is worth 2.4 million does it?
The Ricoh was valued at £6.4m late last year, the council's own High Court papers reveal. They state the valuation was also contained in a council report - yet councillors authorised £14m of taxpayers' money to buy ACL's mortgage.As we previously revealed in October, an independent valuation for ACL by consultants CBRE place the Ricoh's worth at around £6million to £8m, as ACL's bank had stated.
The club and Sisu chief executive Joy Seppala have called for a freehold sale of the Ricoh and surrounding land based on current independent valuations from both sides.
The court heard the club's contention it had effectively paid two-thirds of the £1.3million rent during their "rent strike".
This included more than £500,000 of reserves withdrawn by ACL from a rent deposit account, and over £300,000 in under an "interim rent" arrangement.
If it is only worth £6.4m then doesn't it mean they are in negative equity? I wonder who has given the figure of what it is worth.
If the council do value it at £6.4m then why should SISU pay off the mortgage for them if it isn't worth that?
If I had a house worth 100,000 but my mortgage was for 2.4 million it doesn't mean the house is worth 2.4 million does it?
So 18 months ago Sisu were willing to take over the mortgage and buy Higgs share but now it should be just given to them?
Using that argument then CCFC is worth around negative £60m.
Why didn't sisu sell when they had the chance?
Packet of crisps?
Who did they have the chance to sell it to?
Haskell, the Chinese consortium that Hoffman got together.
Packet of crisps?
Think the report they are referring to is the valuation CBRE did for Yorkshire bank to value the security for its mortgage. Such valuations are often discounted to something much less than open market value it may be the case here too. The question is did the council take an acceptable risk in the security they obtained within the local government rules - going to depend on the instructions for valuation i would have thought and what the rules for making Council loans are. In theory Councils have a discretion as to where they can invest and it isnt restricted to government bonds (ie little risk) but did they act correctly here?
Late 2012 ACL were under a lot of cashflow pressure, turnover apparently half of what it is now apparently, not surprising there was a very conservative valuation. You also have to look at who it was done for and why. Similarly if there was a plan to distress ACL to get the loan paid off cheaply you wouldnt want a valuation that said the loan was secure would you?
Just to be clear I am not saying the valuations were false or illegal or anything less than professional. A valuer will value on the basis of instructions he was given. We do not know those terms or the conditions in respect of the valuation
Since then ACL have restructured, cut normal operating costs and increased turnover. In terms of the business then the turnover increase if it is maintained at those levels adds value to ACL. If the loan set aside (quahed) and CCC has to revisit its processes then they could still come to the decision to lend the money. It is not as clear cut as saying it was only valued at £6.4m
I'm not sure where anybody have said it should be handed over for free?
So worth about £66.4 million more than CCFC Then.Ricoh was worth £6.4m late 2012 based on no CCFC rent. Council court papers reveal a council report had stated this according to Les Reid.
What would it be worth now? What should SISU offer if this is true?
Well in the sceme of things 6.4 million is free compared to a 25 to 30 million shed
So is ACL effectively the lease? So to sell the lease they would be selling ACL?
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