We’re delighted to announce that we have agreed terms with Next plc, to work with them on redeveloping their existing store in Bury St Edmunds.

In Spring 2009, Next will be relocating into The Arc Shopping Centre and vacating their existing unit fronting onto Cornmarket.

This attactive building was once three smaller units, which Ellandi will reinstate on Next’s behalf.

CBRE will be instructed to market the units in the New Year.

As a result of this partnership, Next will get the benefit of Ellandi’s development expertise, will not have to sell a unit with vacant possession into what is a very difficult market as well as retaining much of the “developers” profit.

This approach is one that Ellandi will be delighted to roll out with other retailers in the New Year, to help them maximise value from their property holdings.

Ellandi and K&L Gates hosted a restructuring lunch on 20th November. The objective was to create a forum for discussion in regards to how banks should approach distressed property loans. We were delighted to be joined by representatives of Barclays Capital, Bank of Ireland, Houlihan Lokey, National Australia Bank, Nationwide and Grant Thornton.

There was wide ranging and at times passionate debate but the general conclusion was that there is very little consensus between banks. Some organisations are taking a proactive stance and looking to enforce covenants whilst others are willing to show patience to borrowers providing that interest is serviced. Some banks view LTV as a “technical default” that can be waived whilst others take the view it is a key contractual term that must be enforced. Certain people thought that the loan servicer model applied in the CMBS market is a robust structure whilst others argued it was incapable of making decisions and would lead to paralysis following a loan default.

The only universal opinion was that we are in uncharted waters and that 2009 will be see the banking and property industries having to learn how to cope with major challenges and a new environment. Although, it seems that lenders will address these issues in very different ways.

Despite growing up in Measteg, not even Morgan is hard enough to join the real SAS, but Ellandi has been pleased to once again sponsor the Shop Agents Society annual dinner.

Mark’s luxury Ibizan villa (availableto rent next year at very reasonable rates) has been donated as the main auction lot, which will hopefully raise some money towards the very worthwhile nominated charity, Touching Tiny Lives Campaign

Ellandi has completed a financial review of a major developer that operates in the high end residential market.

The business, with assets of £180m, brought in Ellandi as a consultant to undertake an emergency analysis of its liquidity position. It feared it would shortly be unable to meet its debt obligations, as sales volumes and asset prices fell during H2 2008.

Ellandi worked intensivle to review the business’ cashflows, future projections and ongoing liabilities. We were then able to provide strategic advice in regards to how the business should operate in order to conserve cash and access new funds. This enabled the company to approach its banks with a comprehensive restructuring proposal that were supported by a disparate group of banks.

Ellandi has been covering a lot of miles of late. We have been assisting an international bank in reviewing its exposure to the UK residential market and specifically a number of mid size regional builders.

Having made numerous site inspections, some with the developers and some as mystery shoppers, we were able to produce a comprehensive report that allowed the bank to develop a realistic view of its current security position. We provided advice on potential realisation options and assisted in formulating specific business plans with those lenders that the bank intends to support.

This project required us to work under a tight frame and with absolute discretion. Our small team, extensive experience in the house building sector and background as a developer allowed us to produce a comprehensive and practical report for use by the credit team, relationship managers and senior management at the bank.

The letting of the last remaining unit in the Jubilee Street development Brighton has now completed to Giraffe.

Giraffe will make a welcome addition to a tenant line-up that already includes Carluccios, Tesco, Yo Sushi, Starbucks and Headmasters.

We are continuously asked, what does Ellandi mean? So I thought I would finally dispel the myth that it has anything to do with Leeds United.

In searching for a name we decided to go for something metaphorical. Poncey, pretentious, pointless - guilty as charged. Yet, surely better than being yet another property company called London & Something?

So, we were about to launch a business focused on property and finance into the middle of a credit crisis and a property crash. A harsh, inhospitable and even hostile environment for any fledgling business.

Yet nature shows that there is a continuous process of succession, adaption and survival. Where an environment changes and the dominant species dies it is rapidly replaced by new species, who can adapt to the environment, put down routes, grow and prosper.

One such species is the Indian Jujube Tree or the ‘Ellandi’ as it is known in Tamil and Malayalam (languages of Southern India.) This tree is an important tree in the dry regions. It has learnt to grow rapidly on poor dry soil, where little else survives.

Having grown the Ellandi provides well for the local population. It generates fruit for human consumption, animals will garise on its leaves and its timber is used for both construction and fuel. The Ellandi also has medicinal value being used to counter infection, nausea and even syphilis.

We hope that our business will mirror the humble Ellandi in many ways. Putting down routes in a harsh environment, growing quickly and delivering a bountiful harvest. Obviously keeping us syphilis free will be an added bonus.

We are delighted to have launched Ellandi Restructuring. This is a dedicated business focused on finding solutions to stressed loans and investments in UK real estate.

Ellandi Restructuring will partner with banks and property investors in order to restructure under performing loans and investments.

The impacts of the credit crunch will be far reaching within the property sector and Ellandi is able to deliver the full restructuring tool kit to our partners. This combines our skills in property, banking and restructuring with an ability to invest new capital in order to reposition projects that would otherwise become insolvent.

We have teamed up with a group of entrepreneurial investors who will invest alongside Ellandi in the restructuring process. They share our vision that this presents an opportunity to invest in projects that will benefit from both asset specific capital growth, under Ellandi’s management, and a medium term market recovery.

We are plaesed to be working closely with leading law firms, accountants and major banks and we hope to be able to announce a number of deals before the end of 2008.

For further information, please see www.ellandi.com/pdf/debt_restructuring.pdf

Having initially avoided overt publicity of our new venture, we decided to dip our toes in the water of celebrity culture and give an interview to Estates Gazette Capital.

Despite harbouring concerns that we would be stitched up like kippers, we’re quite pleased with the coverage James Wallace has given us; as it says in the article, all we have to do is prove now that we are the “real deal”.

Please click on the link below to read the article.

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Advised by Savills, we have recently acquired the former police station in Beckenham.

This impressive Victorian building will, we hope, lend itself to conversion into two restaurant units with eight luxury flats above.

Negotiations are progressing well with a high quality restaurant chain for the main unit and a planning application will be submitted this summer. 

We won’t be finishing the project until 2009/2010, so should be selling into an improving market!

Attached is an indicative layout of the commercial element, please contact us or Cormac McNabb (020 7409 8166) at Savills if you would like further details.

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