Dawnay Day to sell 200 investment properties

Posted under General by Michael

Dawnay Day has put its portfolio up for sale. Its administrator, BDO Stoy Hayward, informed that hundreds of prospective buyers have been approaching the company for the purchase of its property assets.

The company is going to sell 200 investment properties which will generate rental income of more than £45m. It is looking for a single buyer, but did not rule out selling the property to a number of purchasers.

Rival groups are trying to buy Dawnay Day’s sound assets at a minimal value, taking advantage of the stricken company’s desperate attempt to raise cash quickly.

Dawnay Day’s decision to sell the investments including a 50% stake in London’s upmarket Wolseley restaurant, has not been forced by the downturn in the property market. The group is trying to raise cash to fund an investment in F&C Asset Management, whose share prices crashed recently.

Dawnay Day estate has three portfolios: Dawnay Day Properties, Insureprofit and Starlight Investment. These properties largely include retail assets and some office and industrial buildings.

The group was built in 1981 by Guy Naggar and Peter Klimt from a shell operation into a financial and property service. Both of them invested in the UK commercial property market to build the business. They had £3.25bn under client management and £2.15bn in assets, before the collapse.

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