Post by Poundbury on May 11, 2009 13:33:59 GMT 1
www.independent.co.uk/news/business/news/royal-reprieve-princes-fund-saved-from-administrators-1670781.html
Royal reprieve: Prince's fund saved from administrators
A property fund backed by the Prince of Wales and dedicated to urban regeneration projects has barely survived the credit crunch after a late change of heart from its supporters.
It is understood that accountant Chantrey Vellacott was lined up as administrator for Tellesma after a Kuwaiti entrepreneur decided against investing in the fund about four weeks ago. An insider said that Roddy Fleming, the head of one of the City of London's most famous dynasties, led a decision to stand down the administrator. The fund's executives are thought to have been eager for Tellesma to continue operations. A source said: "The guys are keen to plough on, as they think it is ultimately a sustainable business."
Incorporated in 2007, Tellesma planned to invest £500m in schemes based on Prince Charles's Poundbury development, an eco-friendly village in Dorset. Disused land and commercial properties would be bought, with developments comprising mixes of housing, retail and office units. Credit Suisse, the investment bank, was hired to raise Middle East money for the fund. The Prince's Charities, which includes the Prince's Trust, owns about a third of the business while his Foundation for the Built Environment was to act as an adviser.
A senior investment source said: "Tellesma was looking to raise funds when the commercial property market was strong. The market then turned and therefore this process has not proved as easy as indicated. The fund did look at all the options, but ultimately it was decided that the most excellent aspirations for long-term sustainable development could be fulfilled."
Tellesma is believed to still be talking to possible investors from the Middle East, though it is targeting a smaller fund of between £300m and £375m.
Royal reprieve: Prince's fund saved from administrators
A property fund backed by the Prince of Wales and dedicated to urban regeneration projects has barely survived the credit crunch after a late change of heart from its supporters.
It is understood that accountant Chantrey Vellacott was lined up as administrator for Tellesma after a Kuwaiti entrepreneur decided against investing in the fund about four weeks ago. An insider said that Roddy Fleming, the head of one of the City of London's most famous dynasties, led a decision to stand down the administrator. The fund's executives are thought to have been eager for Tellesma to continue operations. A source said: "The guys are keen to plough on, as they think it is ultimately a sustainable business."
Incorporated in 2007, Tellesma planned to invest £500m in schemes based on Prince Charles's Poundbury development, an eco-friendly village in Dorset. Disused land and commercial properties would be bought, with developments comprising mixes of housing, retail and office units. Credit Suisse, the investment bank, was hired to raise Middle East money for the fund. The Prince's Charities, which includes the Prince's Trust, owns about a third of the business while his Foundation for the Built Environment was to act as an adviser.
A senior investment source said: "Tellesma was looking to raise funds when the commercial property market was strong. The market then turned and therefore this process has not proved as easy as indicated. The fund did look at all the options, but ultimately it was decided that the most excellent aspirations for long-term sustainable development could be fulfilled."
Tellesma is believed to still be talking to possible investors from the Middle East, though it is targeting a smaller fund of between £300m and £375m.
