Rock Investments has gone into admin.
Could go two ways this one. Jordan the snake will get his chance to buy back the ground at a discounted level, or the asset will be taken over by a creditor.
Why do i get the feeling everything is going to fall nicely for them...?
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Can anyone think of how they might be able to play games without their own ground. Maybe sharing someone else's?
*ducks for cover*
I'm pretty sure it means that his main creditor,The Bank of Scotland will now become owners. They'll certainly want to recoup as much of their losses as possible - though the annual rental income will pull in £1.25m alone.
http://www.propertyweek.com/story.asp?sectioncode=297&storycode=3141899&c=1
does that meen he wont be doing the interviews for Sir Alan 2nite
Indeed, we're in no position to laugh at anyone
They are obliged to get as much as they can, but as much as they can may mean 1p in the £, they are also obliged to not sit on their hands and wait for things to get better in the overall economy.
Sainsbury certainly have the cash but would they get the planning permission? They may want to buy anyway with an eye to the future
Can anyone think of how they might be able to play games without their own ground. Maybe sharing someone else's?
*ducks for cover*[/quote]
True the adminisitrators will try to sell at best price but highly unlikely it will affect Palace much as:
1. There are a lot of very cheap, very easily developable pieces of land out there that could be bought ahead of Palace, development sites just are not selling at the moment and no property developer is going to buy a football ground at the moment IMO when they could buy something else.
2. Even if a property developer did buy it, Palace still have an occupational lease in place for another 23 years or so i should think(i beleive the original one was advertised at 25) therefore no one could do anything with it during this time unless Palace wanted to leave or stopped paying the rent (in which case they would be bust so who cares about Selhurst!).
In reality the adminisitration of the Freeholder will mean very little to Palace except that they will either a) have a new landlord and everything will continue as normal or b) they will buy it themselves making them a more investible club and probably getting it very very cheaply at the moment-my guess is it is worth absolutely no more than 50% of what was originally paid in todays market - and could even be as low as 40%...
Based on an 8% return a £1.25m rental pa values the ground at £15.6m. A football club as a tenant may be considered a higher risk though so you may expect a 10 or even 12% return in which case the cost would be £10.4m
Not for anywhere near as long as the 23 suggested earlier in the thread.
Addickted wrote about it at length to correct one of the palace who post on here a while back.
I'd love it, if Jordan could buy the ground on the cheap, to make it a better investment for potential buyers, but can't honestly see it happening, although maybe potential club owners may see it as a chance to acquire the ground as well.
Palace have a 25 year full repairing lease on Sellout, at about £1.25m PA - Pretty much a standard lease re rent reviews, regular internal/external maintenance, security of tenure, first option to purchase the freehold at agreed amounts (which increase by about £3m every three years!).......
So whoever buys has a virtually gauranteed sitting tenant for 25 years who will be returning you £1m a year (after costs), an increasing revenue stream, a valuation on the asset that has a guaranteed future value...... basically a nice little earner; and a lot of people with a spare £10m laying around may be interested.
Whatever the situation, you can bet your bottom dollar, the Orange Buffoon will be putting in a 'competitive' bid for the ground - even if he's down to his last few million. £1m PA guaranteed income can still get you a pretty large mortgage.