22.3.21
Still of interest. Amongst other things, the contractor on two of the contracts became insolvent and was bought by Findon who then employed it as the building contractor on the Talacre (Princes Park) project. This shouldn't mean a conflict of interest was involved but the fact that Overage as defined in the Land Sale Agreement between Camden and Trac Properties Ltd allowed for actual, but undefined building costs to be deducted when calculating the profit, makes it appear to justify extra scrutiny. Many of the links below will no longer work.
(Also see at bottom reference to RO Futures, a related business).
Since it started business in 2006 Findon has been involved in seven major developments. The Dalby Street, Talacre development (referred to in Findon's documents as POW or Prince of Wales and more recently as "Prince's Park" or "Princess Park") is the main subject of this web site. This page on the earlier web site was intended to provide some information on the other six developments.
Since 2012 this and the page on the earlier site has not been much updated but because it gets an exceptionally large number of hits so appears to be of interest, it has not been moved or deleted. Anyone reaching here, as many who are probably residents in these developments do, may benefit from what may be out of date information and go from there. To provide or seek further information to or from us, contact njhnw5@gmail.com.
Linked here are a posting on the Tel-Aviv Stock Exchange site (TASE) in 2010 in Hebrew and a rough translation into English. It shows each of the 7 Findon projects in columns with amounts.
“Arthaus”. Project Company: Findon Urban Lofts (BBB) Ltd
Update 31.7.12
Findon have applied for a change of use of 508 sqm of commercial area to become 3 one bedroom and 2 three bedroom flats. All appear to be private flats ie non "affordable". Justification is by way of being provided by several agents employed by Findon to market the commercial area who are reported to have had no success - including Greene & Co who are part of the Union Development brand which marketed all Findon's developments, including Dalby St, Talacre. They were also used to perform the same role of proving no commercial use for the Creek Road, Greenwich development some years ago.
The application number was 2012/1752
Update at end of April 2010
A posting on the Tel Aviv Stock Exchange (TASE) site on 9.3.10 said that, following the bankruptcy of the contractor, work recommenced in February 2010 on a cost basis. The new contractor is Sheldon Construction SVRC (London) Ltd, controlled by Assaf Laznik. An independent valuation estimated that the costs to complete would amount to £12.78m. Sheldon agreed to carry out the work for £11.88m, to include its costs since it took over the work. Contractors asked to bid for the work had refused to do so. The board of Findon Urban Lofts plc reported the offer by Sheldon as being a connected transaction (due to Assaf Laznik being part owner of Findon) but a transaction that would benefit Findon.
A report in the construction press on 23.4.10 said "Work on other Lancsville sites has also been taken on by rival contractors. ..... Sheldon Construction has taken on a £11m residential development in Hackney, north-east London."
Companies House shows Sheldon Construction SRVC (London) Ltd 07105685 as having been incorporated on 15.12.09 changing its name to Sheldon on 10.2.10. A director appointed at that time was Benjamin Pollack. In December 2010 Mr Pollack resigned and Assaf Laznik was appointed as a director.
The previous main contractor Lancsville Construction went into administration (together with its associated companies Henry Construction and Henry Cranes) in December 2009. Lancsville were also contractors for Grange Garden "Larnaca Works" which is another of these six Findon developments see below
Work on the site was delayed prior to the collapse of Lancsville but resumed on the site shortly after.
Additional information can be found in Findon’s 2009 and 2010 reports and accounts. The 2009 report showed the total expected sales revenue from the 74 housing units and small commercial area to be £31,169,000. 26 of those units were reported to be “social” and sold for £6.5m (to One Housing Group who are the Housing Association involved with Dalby St, Talacre). In addition a similar number of private units are reported to have been pre-sold for £10m following a marketing campaign in 2008 in Hong Kong and Singapore. That appeared to leave a balance of 22 units being expected to be sold for £15.2m which would be at least double the market price (which would be around what the pre-sold private units raised). We may therefore have missed something in the text although a posting on the TASE site on 5.10.08 showed Findon as expecting to receive over £550,000 for each of 8 units, between £350 and £550,000 for 17 units and below £350,000 for 23 units.
Arthuas is being marketed by Union Developments which was not a limited company but which was closely connected to Findon as mentioned above
Finance for the development is understood to have come mainly from Dunbar Bank who had a charge over the property. Probably due to the delay arising from the collapse of the main contractor, this finance has had to be renegotiated
Other recent information which is referred to in the June 2010 quarterly report is that Findon along with another company obtained planning approval in March 2010 for a scheme which would subsume the existing scheme and contain another 23 units. These extra units would be 11 one bed flats, 4 two bed and 8 three bed. One 4 bedroom flat would become a 5 bedroom flat). Of these 23 additional units, two are "affordable" which represents a far lower proportion than is intended under government policy. The planning officer's submission to the Council's planning committee justified this by saying ""In this instance a valuation appraisal has been submitted which shows that the viability of the scheme is marginal." Details can be found here [no longer but could be traced if important]
In September 2010, the 2009 accounts for Findon Urban Lofts (BBB) were registered at Companies House. They show a change of £59,961 in the figures shown in the previous years accounts for net finance costs and a new "Other Reserve" of £286,442 described as representing "the adjustment made to shareholder's borrowings in order to include them at their fair value".
On 30.3.11 the accounts of Findon Urban Lofts were posted on the TASE website. Information concerning this project includes that the development should be completed in June 2011. The existing loan expires in June 2011 and some form of refinancing will next to be found. Expected cash received is forecast as about £30m and £4m in 2011 and 2012 respectively. Forecast gross profit prior to some finance charges is shown at £9,711,000
On 30.9.11 the accounts of Findon Urban Lofts posted on the TASE website shows units having been sold for £21,093k. The loan is reported to have been repaid in October. The Land Registry shows Misrahi Tefahot Bank now having a charge on the site.
History
Planning approval was originally sought by Nellbush, a company which, as far as we know, had no connection to Findon. The application was turned down and Nellbush appealed. Hackney used the services of Camden’s legal department to represent it at the appeal in October 2006. The appeal was successful and Hackney, represented by Camden, lost.
In March 2007 Findon formed a subsidiary company, Findon Urban Lofts (BBB) Ltd which, in June bought the development for £6.75m from Nellbush (according to the Land Registry)
As well as being represented by Camden (and Peter Harrison QC who appeared for Camden at the Dalby Street public inquiry), there is an interesting additional connection. This relates to part of the land for the Dalby Street development which was occupied, under license, by travellers – hence it was and is known as the Travellers Site. Arrangements were evidently made to rehouse the travellers resident there in 2006 with the assertion being made that there was no outstanding applications for such pitches in Camden, whereas it was reported that there were very many in Hackney
"THEATRO". PROJECT COMPANY: CREEK ROAD LTD
Update at end of April 2010
A posting on the Tel Aviv Stock Exchange (TASE) site on 11.3.10 refers to various transactions one or more of which is described as a connected one. Companies referred to include Bildmar Developments Ltd and NWH Ltd. The number of housing units increased from 36 to 48 and the commercial area reduced substantially. This led to an increase in projected sales from £11,500,000 to £15,168,000 and gross profit from £920,000 to £2,629,000
A search at Companies House shows no company registered there with the name (or a similar name) of Bildmar Developments. NWH Ltd is shown as having had an application to be struck off the registry followed by the 1st gazette notice for voluntary strike off on 23.2.10. NWH Ltd is a Blackburn development company formed by Gerald Hitman who died in June 2009. Mr Hitman was a well known local character who wrote a regular column under a pseudonym in the local press. A search at Companies House at 29.4.10 shows NWH as over three months overdue with its filing of annual accounts and annual return and that a "First Voluntary Notice for Strike off" had been gazetted on 23.2.10.
Following the collapse of Cornhill in March 2009, the site was closed down until September 2009 since when work has been carried out by Heydon and Carr and its associated company SHACA Construction. A show suite was opened in April 2010. However, occupancy of any of the housing units appears to be several months away.
The Findon 2nd quarter 2011 report and accounts posted on TASE on 30.8.11 show forecast sales (believed to be from 1.7.11) of £1m for the rest of 2011 and £3.5m for 2012.
The Findon 3rd quarter 2011 report and accounts posted on TASE on 29.11.11 shows 19 private flats having been sold to that date for £6,448k (of which 15 were sold in 2010.
In October 2011 it appeared that 12 flats were owned by Creek Road Properties Ltd and mortgaged to FBN Bank (UK) Ltd (the UK subsidiary of the First Bank of Nigeria). Creek Road Properties Ltd is wholly owned by Creek Road Ltd, the Findon subsidiary that developed the site.
History
On 13th March 2009, the contractor building the flats (Cornhill Construction Ltd) went into administration and its administrator (Tenon Recovery) laid off all Cornhill's staff. In a posting on the TASE site, Findon stated that this would not affect the development's profitability as they held retention and a bond from which they would benefit. The administrator's report of 6.5.09 which is linked here, indicates that there had been a number of disputes between Cornhill and the site owner which had contributed to the situation. Cornhill were also the main contractor for the 459-463 New Cross Road "Atrium" development (where more information can be found) and the Furmage, Garrett Court development.
Originally there were to be 22 private flats. It was being marketed by Union Developments. The report posted by Findon on the Tel Aviv Stock Exchange site on 5th October 2008, showed all 22 dwellings valued at between £350k and £550k. That report can be found on our "Financing of Findon and TASE" page [29.1.22 no longer available] - see attachment "Flat prices forecast" at the bottom of that page and then go to page 22. There were to be a further 12 "social" units sold to Moat Housing Association for £2,085,995.
The company sought a change in the planning approval on the grounds that it would not be worth its while to continue to build the flats unless some of the commercial area was permitted to change to being private flats.
Invitations to buy the part built site were elicited by Greene & Co (Marc Meltzer) to demonstrate that it was not financially viable unless some of the commercial area was converted into residential. Allsop’s letter of 3.10.08 addressed viability of the scheme and the extent to which affordable flats would be required.
The 30.6.09 quarterly report posted on the TASE site on 26.8.09 said that a financing agreement for £8,367,000 was expected to be signed in the next few days and that completion of the project was expected to be July 2010. The 2009 accounts refer to there being an extension to the loan agreement for £8,367,000 to 30 November 2010. Security from Findon's stakeholders for part of the loan is referred to. This loan is understood to be provided by Clydesdale Bank having originally come from Barclays.
In November 2009 a press report (see link below) appeared saying that this project was to be promoted at the Colliers International Exhibition at the Mandarin Oriental Hotel in Hong Kong. It stated that it is "a stone's throw from Canary Wharf" and "within easy walking distance of Canary Wharf". This is again, an example of exaggeration. Canary Wharf is the other side of the Thames. There is no bridge or tunnel close. The official transport website indicates that to get to Canary Wharf would require a 15 minute walk followed by a ride on the Docklands Light Railway.
http://greatreporter.com/mambo/content/view/1836/1/
LEWISHAM, SE14 6TA. “THE ATRIUM”. PROJECT COMPANY: NEW CROSS URBAN DEVELOPMENTS LTD (REG BRITISH VIRGIN ISLANDS)
Update at end of April 2010
This development seemed to be reported in Findon's 2009 accounts as if it were completed, Unlike the other uncompleted developments, no estimate is given of the cost of sales. However, work was still in progress on site at the end of April 2010 and no housing units are occupied nor commercial units ready for occupation.
According to Findon all housing units have been sold with amounts of £6m shown for private units and £1,825,000 for affordable units.
On 20.11.09, Bloomsbury Construction Ltd who were managing the project following the collapse of Cornhill (see later) went into creditors voluntary liquidation. The resolutions of shareholders and of creditors was signed by Kyriacos Spyrou, the owner of the company. The Statement of Affairs filed at Companies House show estimated total assets as being expected to realise £20,000 and there being creditors of £318,405 including an amount of £150,000 owing to Mr Spyrou. At the same time, Ridgeway Consulting (UK) Ltd, went into creditors voluntary liquidation, with the resolutions also being signed by Mr Spyrou.
The 30.6.10 report and accounts forecasts receipts for sales of £7,548k and £7,300k in 2010 and 2011 respectively and refers to 12 private flats as having been sold at the date of the report ie August 2010 for £3,600k.
The Findon 3rd quarter 2011 report and accounts posted on TASE on 29.11.11 shows contracts having been signed for 42 private flats for £16,149k.
History
Originally this development was for 26 one and two bedroom private flats. It is being marketed by Union Developments. That site describes all units as having been sold
The report posted by Findon on the Tel Aviv Stock Exchange site on 5th October 2008, showed all 26 dwellings valued at below £350k each. That report can be found on our "Financing of Findon and TASE" page - see attachment "Flat prices forecast" at the bottom of that page and then go to page 22.
On 13th March 2009, the contractor building the flats (Cornhill Construction Ltd) went into administration and its administrator (Tenon Recovery) laid off all Cornhill's staff. In a posting on the TASE site on 31.3.09, Findon stated that this would not affect the development's profitability as they held retention and a bond from which they would benefit.
Cornhill administrator's report of 6.5.09 which is linked here, indicates that there had been a number of disputes between Cornhill and the site owner which had contributed to the situation. Cornhill Construction was only working on three construction sites at the time of its insolvency, two of which were this development and the Creek Road development. His report says concerning these two contracts "Work commenced on the two residential developments in mid 2008, the projects running concurrently. In both cases, the progression of the work carried out was impeded by unexpected delays, which the Directors contend developed as a result of ongoing variations to the initially agreed plans. These delays in turn caused further set backs to the Company, in terms of securing valuations on work completed; subsequent delays in the certification of work carried out; resultant delays in payment of certified work; disputes arising in respect of valuations of work and also non-payments relating to other related contractual issues." The statement of affairs produced by the administrator shows four bonds of which two seem likely to be in respect of these two Findon developments. These bonds are for £390,000, £1,786,500, £1,244,008 and £918,376.
BERMONDSEY SPA, SOUTHWARK, SE1 3EW. “LARNACA WORKS”. PROJECT COMPANY: FINDON URBAN LOFTS (AAA) LTD
Update at end of April 2010
The main contractor Lancsville Construction Ltd and its associated companies Henry Construction and Henry Cranes went into administration on 17th December 2009 and the site was closed down. However, little work had by then taken place although required to comply with permissions obtained.
A report in the construction press on 23.4.10 said "Work on other Lancsville sites has also been taken on by rival contractors. Ardmore is finishing the £12m Larnaca Works project for Union Developments in Bermondsey, south London ...". Since the demise of Lancsville, there has been serious construction activity on the site.
In December 2009, it was reported that this project was included in a list of development schemes to benefit from the government's "kickstart" programme and could, subject to conditions, receive finance of £4,094,687
According to the Union Development web site 25% of its flats have been sold. Pre-sales are shown in Findon's report and accounts for 2009 as £2,380,000 for private units and £1,915,000 for affordable units.
This development was for 63 private dwellings. A press report in November 2008 said that the developer had negotiated a reduction in the proportion of affordable homes required and that implementation is required to be within six months. On 31.3.09, in Findon's report on the TASE site, they said that they had to start construction work by 4.5.09 to benefit from the revised planning condition. In that posting, they estimated completion in February 2011. The revised permission would mean the development would contain 72 private and 18 social units.
It is being marketed by Union Developments
The report posted by Findon on the Tel Aviv Stock Exchange site on 5th October 2008, showed 11 dwellings valued at over £550k, 46 between £350k and £550k and 6 below £350k.
The report posted on TASE dated 31.5.09 says that a Design and Build contract for £13.4m was entered into in April 2009 but that it was subject to a funding agreement.
A 50/50 joint venture between Findon and a newly formed company called Findon Urban Lofts (LW) Ltd was signed in August 2007. Shareholding in Findon Urban Lofts (LW) Ltd is Manhattan Lofts and one of its directors, 50% and two directors of Greene & Co totalling 50%. Manhattan Lofts and Greene & Co are members, along with Findon of the Union Development brand.
In its quarterly report to 30.6.09, the Findon stated that in July a loan agreement for £18,250,000 had been signed with Clydesdale Bank who have a charge on all the related assets. Stakeholders have provided a further £1,750,000 and a guarantee for £1m..
The 30.6.10 report and accounts show forecast receipts from sales of £1,494k and £16,857k = £18,351k in 2010 and 2011 respectively
The situation in mid September 2011 is that no flats have yet been occupied and work continues on site. Scrutiny of the planning documents shows that the number of affordable flats was reduced from 27 to 18 (with an increase of 9 private flats) in May 2009 with a requirement to complete withing two years.
Dec 2011. This development has been removed from the Union Developments website. All of Findon's other six developments remain on that site being shown as either projects under development or completed. It was later restored to that site
FURMAGE STREET, EARLSFIELD, WANDSWORTH, SW18. PROJECT COMPANY: FURMAGE PROPERTIES LTD (REG IN BRITISH VIRGIN ISLANDS)
22.10.10 TASE Posting
Findon posted information on the TASE site today of a writ received from an institution in connection with this project.
Update at end of April 2010 and history
A posting on the TASE site on 17.3.10 announced the sale of Furmage Properties Ltd (a company registered in the British Virgin Islands). This follows the sale of all flats in the development in 2008. The announcement referred to the situation regarding legal and maintenance issues.
The report of 31.3.09 posted by Findon on the TASE site states that this development which consists of 26 flats was fully completed and, as a result of an earlier pre-sale agreement, they had been fully paid in the quarter ending 31.12.08. However there appears to be an outstanding dispute according to the report of the Administrator of Cornhill Interiors Ltd, an associate company of Cornhill Contracts Ltd (see under 459 - 463 New Cross Road "Atrium" and Creek Road "Theatro"). Cornhill Interiors were the main contractors for this project. In the report dated 31.5.09, this item for £600k continued to be shown as an outstanding contingency.
This report of Cornhill's administrator dated 7th April 2009 said "Of the projects undertaken by the Company [Cornhill Interiors], an ongoing contract at Garratt Court developed into a loss-making assignment. A potential loss was identified between August and September 2008, although initial approximations suggested a deficit to the Company of £250,000 unfortunately , it emerged by December 2008 that the quantum of the losses would amount to £900,000. The project was nevertheless completed, upon which the Company hoped to recover a sum of £300,000, relating to a professional indemnity paid to a surveyor. The repayment was not forthcoming from the surveyor, which resulted in the necessity for the Company to commence legal proceedings. Regrettably, the decline of the Company prevented its ability to pursue this action and the funds remain outstanding."
PROJECT COMPANY: CROWNDALE PROPERTIES LTD (REG IN BRITISH VIRGIN ISLANDS)
Update end of April 2010 and history
This project consisting of 13 housing units (8 houses and 5 flats) was completed in 2008. The last of these units were sold in 2009 and seem to have been the only revenue in 2009 of the Findon group.
The report posted by Findon on the Tel Aviv Stock Exchange site on 5th October 2008, showed 7 dwellings valued at over £550k, 2 between £350k and £550k and 4 below £350k. That report can be found on our "Financing of Findon and TASE" page - see attachment "Flat prices forecast" at the bottom of that page and then go to page 22
RO Future Group PLC
22.8.13. nb some of the links below will no longer work. Much of it is now out of date.
Although RO Future Group Plc is not part of the Findon Urban Lofts plc group, as an associated company (due to the Laznik connection - Asaf Laznik, is shown as 45% owner) its situation may be of interest to some. It has had two bond issues which are quoted on the TASE. Documents could be found on the two TASE sites providing information on such matters as disputes over developments and requirements of the Israeli Secuties Authority (ISA). R O Future Group has or has had, developments in Romania and Belarus. There were links to the TASE sites for the first bond issue and for the second. Later Company Disclosures (Hebrew) could be found by clicking on the link towards the bottom of the TASE pages.
IMPORTANT UPDATES RE RO FUTURE GROUP FROM 2.9.10
THE REPORT AND ACCOUNTS OF RO FUTURE GROUP LINKED HERE WERE POSTED ON THE TASE SITE ON 1.9.10. THEY SHOW THAT THE COMPANY IN FINANCIAL DIFFICULTIES AND MAY WELL NOT BE ABLE TO CONTINUE AS A GOING CONCERN. SEE FOR EXAMPLE, THE AUDIT CERTIFICATE ON PAGE 3 OF THE REPORT. THIS DOCUMENT IS LINKED HERE
A MEETING OF BONDHOLDERS HAS BEEN CALLED FOR 3.10.10
UPDATE 5.10.10
THE MEETING ON 3.10.10 WAS ADJOURNED UNTIL A DATE TO BE DETERMINED BY THE TRUSTEES (ZIV HAFT) BUT TO BE BETWEEN 14 AND 24 OCTOBER 2010 DUE TO NEGOTIATIONS FOR THE SALE OR RENT OF PART OF ONE OF THE SCHEMES
UPDATE 29.10.10
THE ADJOURNED MEETING WHICH HAS BEEN GOING TO TAKE PLACE ON 31.10.10 HAS BEEN POSTPONED UNTIL 7.11.10
UPDATE 17.11.10
ALTHOUGH THE AGENDA FOR THE 7.11.10 MEETING WAS POSTED, NOTHING FURTHER HAS BEEN SEEN.
THERE ARE SEVERAL POSTINGS ABOUT SALES OF ASSETS AND OF LEGAL ACTIONS BEING TAKEN AGAINST RO FUTURES.
UPDATE 30.11.10
Report and Quarterly Accounts to 30.9.10 posted on TASE site. This confirms such matters as:
the insolvency of the company and the non payment of debt service etc for companies in the group
many legal actions involving it and its subsidiaries
that Assaf Laznik resigned as Chief Executive and his father, Mario Laznik was appointed. Assaf Laznik has been the Chief Executive of Findon Urban Lofts plc since its start in 2006. Assaf Laznik also sold his shares in RO Futures to Mario Laznik
Provides details of the settlement of the two bond issues of RO Futures following which there will be no further quarterly accounts required to be provided.
UPDATE 24.1.11
There have been several postings on the TASE site recently which include
the sale by the lending bank of the land of one of the RO subsidiaries, showing the proceeds and the amount owed to the bank.
Resignation of Oded Goldsstein as a director
Part Repayment of Bonds 23.1.11
Postponement of Repayment of Bonds from 23.1.11 to 28.2.11
7.2.11. Postponement of Repayment of Bonds from 28.2.11 to 31.3.11
13.3.11. Postponement of Repayment of Bonds from 31.3.11 to 5.5.11
15.3.11. A meeting of bondholders that was to take place the following day ie 16.3.11 postponed with no date given for when it will take place
6.4.11 The 2010 Annual Report and Accounts for RO Futures for the year 2010 were posted on the TASE site on 30.3.11. This confirms the critical state of its finances with losses in 2008, 2009 and 2010 of €16.5m, €3.6m and €17.4m respectively. At 31.12.10, the Balance Sheet shows a deficit in Shareholders Funds of some €9m
12.4.11 Postponement of Repayment of Bonds from 5.5.11 to 14.6.11
1.5.11. The Accountants may resign unless they are paid in the next 7 days and there is no cash available to pay them
1.5.11. The agenda and related information for the meeting on 16 May 2011
6.5.11. A lengthy report on the state of affairs of RO Futures posted on the TASE site. This report repeats that RO has run out of money. That there is a mass of litigation. Many banks who have lent to the subsidiaries of RO Futures appear to have lost money. Assaf Laznik (the CEO of Findon) was the CEO of RO Futures until sometime in 2009 when his father, Mario Laznik took over.
13.7.11. Due to the number of postings on the TASE RO Futures bond sites, it has not been possible to update this section. It is possible that there has been a further postponement.
30.8.11. Postponement reported from 18 September to 18 October 2011 on Series A bonds.
12.9.11 update. 6 months accounts to 30 June 2011 were posted at end of August. They show a loss for those 6 months of over 4 million euros with a deficit of shareholders funds of over 13 million euros.
9.10.11. Mario Laznik reported on TASE to have resigned due to retirement resulting from ill health. Another director to be appointed. He had been a director since 18.2.10