By Michael Epstein
(who has been critical of FirstPort in the past)
Firstport the controversial property management company, have recently negotiated a major re-financing package with Lucid Trustee Services and investors Equistone.
This follows the failure by Firstport’s previous investors to sell the company and their subsequent decision to withdraw from their involvement with Firstport.
Already crippled by net debts of up to £41,000,000 and paying interest charges of between 9% and 15%, Firstport urgently had to seek new investment?
Between Lucid Trustee Services and Equistone, it is believed that funding has now been secured amounting to £81,700,000, repayable in October 2026.
Interest will be rolled up to that date. Thus far, the interest rates for the loan remain confidential.
As part of the re-financing Firstport has been restructured.
Inter-company loans amounting to several millions of pounds have been written off.
This is thought to have contributed to the dramatic increase in losses at the majority of Firstport companies.
Firstport also had to raise £20,000,000 by selling their interests in the leaseholds of residential house manager’s flats.
The lenders have taken a primary charge on all Firstport assets. This means they have first call before anyone else should Firstport fail again?
Of great significance, is that the restructure separates the highly profitable Careline business(Appello) from its Firstport sibling.
This means that in the case of a Firstport default, the Appello division will remain unscathed from any fall out as a consequence of this.
Financiers such as Lucid and Equistone are skilled operators that know how to turn a profit whether the company they invest in succeeds or not?
That is the market they operate in?
Related posts:
FirstPort fined £360,000 over fatal fire at Gibson Court
Managing agent asked to explain his ethics …
Managing agents owned by landlords must come clean … says leading managing agent
Enfranchisement, commonhold and managing agent regulation are first up for the Law Commission
After £11,500 Peverel victory, Strand Court dumps second managing agent
Elderly Accommodation Counsel says ‘recent retirement flat resales have increased in value’
Just to add a little context?
Firstport Property Services Inter company loan written off £9,771,604
Firstport Retirement Inter company loan written off £7,481,484
Firstport Scotland Inter company loan written off £1,619,900
Firstport Bespoke Inter company loan written off £2,571,516
While leaseholders of flats and houses are gaining momentum and rightly so leases relating to public open spaces are not being recognised with similar vigour bu the costs and hazards are a problem. The residents gave massive bills on their developments to keep them safe and tidy. Managing Agents are charging fees worthy of a full time person working on these areas permanently while delivering poor service. LKP have not been great in capturing the woes of these leaseholders.
Cliff, Those in the position you highlight have been very hard done by and ruthlessly exploited by some of the largest managing agents in the country.
However your criticism of LKP is unjustified. They have worked tirelessly along with NLC on the issues you have raised.
Necessarily much of the work has been in the background “offsite”.
The Law Commission has recognised many of the problems and in the future people in your position will find it much easier to appoint your own managing agent and you will be given rights to go to the tribunal.
None of this would ever have happened without LKP
Fear not fellow sturdy rustic tenants.
Baron Boris will surely bring forward a grand English leasehold reform bill in the coming Gracious Speech.
Much rejoicing and buntings to hang up.
For LKP to be excused the criticism presented by Cliff they need to take a harder stance against managing agents that unfortunately they possibly obtain fees from.
The main issue that LKP have raised is the doubling of ground rents, however these should be set out in the lease agreement and accepted by the buyer.
The biggest problem with leasehold is the actions of managing agents, totally unregulated and mostly unacceptable when it comes to the fees charged.
Do we read about these issues on LKP?
I’ll leave this for the readers to make their own decisions, however I believe this is not a site for managing agents to be exposed of their unethical behaviour despite LKP being a charity.
NJS, Oh really?
you have never read anything about Firstport, McCarthy & Stone, Chainbow, Cladding issues? Service charges,, Leasehold Advisory Service , Roger Southam, E&J, E&M, Long Harbour, Lord Astor, THE OFT/SFO, Non adopted grounds, Off shore funds, Insurance commission scandals, Taylor Wimpey, Persimmon, Bellway, Mis-selling, Poor build quality?
Have you missed all of the above NJS?
They have all featured on a regular basis on LKP?
Is it just possible that as the campaigning sites such as LKP become ever more effective and are closing in on stopping the scandalous abuse of leaseholders, some with a vested interest in maintaining the status quo might seek to undermine LKP?
Having caught in a trap with First Port who now has raised managing agent fees up around £100 every six months I am grateful to LKP taking an interest and bringing it to the notice of the government. I am hoping this and the buying of lease extension and buying of the freehold will be high on the agenda of the government once something is resolved with Brexit.
According to the latest published Firstport accounts,”Revenue streams grew 6% due to increased management charges and new developments”
Having first hand experiences with Firstport Im not surprised they are in a mess, they cannot manage one 36 flat development so flats throughout the country must be in the same boat. The landlords have to take some responsibility because they use them as a Management Company. I wont hold my breath that the Government will put anything in place for leaseholders.
I and two other residents of a FirstPort managed Retirement development called The Chines, in Bournemouth, just had a meeting with our Area Manager. We showed him the article about FirstPort and the £41,000,000 debt. He absolutely denied that there is any debt, and that it was made up to discredit FirstPort, or words to that effect. He pretended that he had never heard of LKP!
We already had a deficit of £12,000 earlier this year,and residents are naturally very worried.
He also denied other facts that were put to him that we know are true, so he was going to deny that your information was false,and I think we knew that before we confronted him.