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Sunday, September 20, 2009

Business big shot: Paul Reichmann, Property developer 



Paul Reichmann is likely to allow himself a wry smile as the rejuvenation of Canary Wharf continues apace.

The veteran property developer, 78, was the driving force behind the creation of the landmark development in London’s Docklands 22 years ago, after securing the personal backing of Margaret Thatcher, then the prime minister. She all-but-sealed the Wharf’s future as the de facto alternative to the City after agreeing to extend the Jubilee Line to the site.

The Vienna-born Mr Reichmann, the son of a wealthy egg merchant and part of a family of Orthodox Jews, spent much of the subsequent two decades on a roller-coaster ride — he lost control of Canary Wharf twice, thanks to a shortage of tenants and the downturn in commercial property values. Last week, Mr Reichmann effectively ended his association with Canary Wharf after it emerged that Songbird Estates, the controlling shareholder, had bought an 8.45 per cent stake that he had owned. Mr Reichmann’s holding was pledged against loans from Dresdner, the German bank that was bought by Commerzbank earlier this year. Commerzbank sold the holding on Friday for £112.5 million.

Mr Reichmann first lost Canary Wharf — which for a time was the world’s largest property development — in 1992, when his Olympia & York developer was forced into bankruptcy with a debt bill of $20 billion.

Although the collapse wiped out most of Mr Reichmann’s personal fortune, he quickly rebuilt his empire. In 1995, after teaming up with investors including George Soros and Prince Alwaleed bin Talal, the Saudi billionaire, he bought the Wharf back from its lending banks and became chairman, later floating the company.

But in 2004, a takeover battle for Canary Wharf erupted, one that pitched Brascan, a Canadian developer, against the Songbird consortium, which included Morgan Stanley and British Land. Mr Reichmann, a Canadian citizen, threw his weight behind Brascan, but Songbird won the contest with a £1.9 billion bid.

Crisis loomed again for Canary Wharf last year after a sharp slide in property values left it close to breaching its covenants. But late last month, Songbird agreed a £1 billion rescue refinancing backed by the state of Qatar and China Investment Corporation, the sovereign wealth fund. Songbird will flesh out the details at its half-year results this week.

http://business.timesonline.co.uk/tol/business/industry_sectors/construction_and_property/article6841789.ece

Comments:
I've known the Reichmann family for many years. They are honest and ethical. They have (or have had)a team of lawyers to review business deals and to make sure that no one (the other side) is cheated. All their business and personal dealings are strictly according to Halacha. I wish there were more fine upright people like them in the world.

 

What an amazing family. Such nice people to deal with.

 

Rumor has it that when he came to the Lubavitcher Rebbe for advice on this project, the Rebbe told him a few times that it would be better for him to invest in Israel.

 

wrong, why do you people throw the lubavitcher rebbis name to make it sound better???? he never did? he did not make a deal in work matters without speaking to his rebbi, from ponovizh rav Shach, and after his passing he and his son berry consult their rov in toronto Rav Shlomo Miller. Stop making up stories that sound good!

 

So you're effectivley saying that the Ponovicher Rav advised him to get into this mess?

 

no im not saying that, he asks advice, and i was not there to hear what he was told!, but you stated about the rebbi, the rebbi gave many people brochos , ie wealth and health and they died and did not get wealthy does that mean the rebbi is at fault?????? hello??? do we get all that we need when we daven at a kever or go to a rebbi or rov for a brocha? i just said i know he did not go to the rebbi to discuss it! i live in toronto and spoke with his son ! so get your facts straight before you write in a public forum and as well dont think the rebbi had all the answers, he was not moshe rabbenu and he was a tzaddik, but sometimes even when a tzadik gives a brocha hashem decides differant!

 

Ask his son how rav shach advised him on this matter

 

i am sure that all frum jews follow daas toiroh and whatever their rov said he did, and if it went wrong, then it does not mean that daas toiroh

 

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