The Monaco family behind some of the tax haven’s most expensive property developments has entered the prime central London market, spending £100 million buying residential property around Mayfair, Knightsbridge and Belgravia. Jacopo Marzocco, 31, who is leading the investment drive, is a third-generation member of the Marzocco family that built the Tour Odéon skyscraper in Monaco, where a penthouse has been marketed for more than £250 million. His company Real Estate, Design & Development (Redd), which develops and manages luxury properties in Monaco, established a London office last year to cater to the needs of the super-rich in Britain. Redd has since built up a portfolio of apartments and mansion blocks in London’s most expensive postcodes, including a £15 million mansion block in Mayfair that was once the headquarters of a Greek shipping dynasty. Lucian Cook, head of residential research at Savills, said: “There’s a growing pool of domestic and international money waiting to exploit a perceived buying opportunity, subject to getting more clarity on what lies ahead politically and economically. Deal or no-deal Brexit, a bottoming-out in the value of sterling should act as the trigger to unlock pent-up demand.”
About 300 workers have been let go by Sirius Minerals (SXX) as the North Yorkshire fertiliser mine developer slashes costs to preserve cash. The future of the company and its ambitious mining project were thrown into doubt last month when its $3.8 billion funding plan failed. Chris Fraser, chief executive of Sirius, told The Times that he hoped to carry out an initial strategic review of the project and alternative funding options by the end of this month. One option could result in Sirius trying to raise a much smaller sum to fund construction of what are perceived to be the riskiest parts first, he said.
Simon Townsend, chief executive of EI Group (EIG), disputed evidence given to MPs that the way pub business rates were calculated was “corrupted” in an attempt to increase rents for giant pub owners. Mr Townsend, 57, was responding to a Treasury select committee inquiry into business rates, the tax on commercial properties. He wrote that “false suggestions” had been made that Ei had played “a major part in the way that the business rates system was agreed, inferring that the system was corrupted”. The disagreement revolves around the calculation of business rates for bars and public houses. The tax is usually based on a property’s rateable value, but in a handful of areas including pubs, cinemas and petrol stations, the tax is linked to a tenant’s turnover.
A new chairman has been lined up at Imperial Brands (IMB) to lead the struggling tobacco company out of its slump, but the appointment is being held up by legal issues. The company’s eight-month hunt for a replacement for Mark Williamson, 61, has taken longer than expected because of the difficulty of finding high-calibre directors willing to oversee a tobacco business. In addition, it had to compete with its arch rival British American Tobacco (BATS), which is also looking to replace its chairman, Richard Burrows, 73. Imperial and BAT have to comply with new corporate governance rules stating that chairmen should resign after serving nine years on the board.
Vodafone Group (VOD) has begun testing a new technology that could reduce its reliance on Huawei, the Chinese telecoms equipment supplier. The mobile phone giant is experimenting with an open access radio system it has developed with Intel, the American chip giant. The kit standardises the hardware and software used in the masts and antennae that carry calls and data. Vodafone, which is trialling the new technology in Britain, hopes it will loosen the grip of Huawei and Scandinavian rivals Ericsson and Nokia on the market and make it cheaper to build networks in rural areas.
Mike Ashley’s is believed to be preparing to shut down almost every House of Fraser store at the end of the crucial Christmas trading period as the entrepreneur prepares to call time on his doomed investment in the department stores. With seven of the 59 retail outlets empty, Sports Direct is either not paying rent or preparing to end the leases on most of the rest, making it easier for Mr Ashley to end his association with the retailer, according to a report in The Sunday Telegraph.
Aston Martin Holdings (AML) is under pressure to shake up its board and bring in directors with more experience at listed companies after a disastrous first year on the stock market. The shares have plunged 74% since it floated a year ago, hammered by weaker demand, supply-chain problems and a profit warning that exposed its debt-laden balance sheet. Some investors are believed to be keen for an overhaul to bring in more support for chief executive Andy Palmer. In an interview with The Sunday Times, Palmer, a former Nissan No 2, said it had been a “torrid year”. “It’s been personally uncomfortable. One year on the FTSE through this [is like] a dog’s year. It’s seven years’ worth of experience.”
Greene King (GNK) former boss has been tapped for the chairmanship of Domino’s Pizza Group (DOM) as the delivery outfit seeks to settle a dispute with its powerful franchisees. Domino’s, which is seeking a replacement for Stephen Hemsley, is understood to have approached Rooney Anand, who chairs Café Rouge owner Casual Dining Group. The 55-year-old was paid £850,000 to sign a non-compete clause when he left the pubs group in May, but this is not thought to prevent him taking a role with a food delivery operator. The search is being led by Ian Bull, Domino’s new senior independent director, who has appointed headhunters from Heidrick & Struggles. Hemsley has been with the company for 21 years and is expected to step down before the annual meeting in April.
Three former Barclays (BARC) executives will appear in court tomorrow on charges of fraud connected with Qatar’s role in the bank’s emergency fundraising during the financial crisis. The Old Bailey trial, set to last into next year, involves Roger Jenkins, 64, former executive chairman of Barclays Capital, which used to be the investment banking unit; Thomas Kalaris, 63, who was head of wealth management; and Richard Boath, 60, the former head of European financial institutions.
As Nike and Adidas’s high street retailer of choice,JD Sports Fashion (JD.) now leads the ath–leisure field. Over the past five years, its share price has risen more than eightfold to 734p, giving the company a valuation of £7.1bn. A combination of JD’s success and savage high street conditions meant that Footasylum (FOOT) found it hard to turn a profit. So when JD tabled a £90m bid for its rival in March, it looked as if Rubin was returning the favour. Now, though, the Competition & Markets Authority (CMA) has opened an investigation that could expose JD to a level of scrutiny it had not expected. Sick of being deprived of the most desirable new products from Nike and Adidas, JD’s rivals not only want the deal blocked on competition grounds, they want the CMA to review the chain’s close working relationship with the most powerful sportswear brands. “JD has opened up a hornet’s nest. As the CMA investigates, it will realise that this is market abuse because JD is colluding with Nike and Adidas to manipulate the products on offer,” a source claimed.
Peer-to-peer lender Funding Circle (FCH) is pursuing the directors of a small property developer after it defaulted on a £250,000 loan. Fusion Interiors (Southeast) took the cash in November 2017 to finance building projects. It agreed to monthly repayments over five years at 13.5% interest. Fusion made 10 payments before it went bust in April. The East Sussex-based firm was founded by John Littlejohn and Steve Murphy 10 years ago. In the year ending June 2017, Fusion posted pre-tax profits of £177,000 on sales of £1.7m. Littlejohn later alleged that Murphy had taken the loan without his knowledge and forged signatures on the contract. A police inquiry did not find “any fraud capable of withstanding a prosecution”.
A New York court has provided a rare lift for the under-fire litigation funder Burford Capital (BUR) by rejecting a case brought by a Russian oligarch against his ex-wife. The Supreme Court threw out an application by the oil tycoon Farkhad Akhmedov, who had been contesting divorce payments to his ex-wife. Tatiana Akhmedova, who was being funded by Burford, was awarded £450m in 2016 in one of Britain’s biggest-ever settlements. The judgment is a boost for Burford, whose shares tanked after an attack by short-seller Muddy Waters in August. It was also embarrassed when a senior executive was accused of trading sensitive documents for a sex tape in an unrelated case.
Hopes that Nanoco Group (NANO) could become a cog in tech supply chains made it a closely watched stock after it listed on AIM, transferring to the main market six years later. That enthusiasm has faded. Its key American partner — understood to be iPhone-maker Apple — stalled on renewing its contract in June, causing the shares to plunge 77% to 8.5p. They have barely recovered since. All this does not mean that Nanoco is without promise. The quantum dots market is poised to grow from $2bn in 2017 to $8.5bn by 2023, and Nanoco’s sales are expected to have more than doubled to £6.7m when it reports full-year results on October 16; pre-tax losses are set to have narrowed from £7.1m to £4.8m. Analysts at the investment research house Edison said the contract loss was a “major blow” to the company, but stressed that it remained the biggest holder of intellectual property (IP) in its field, with 750 patents. With commercial opportunities not being fully grasped, though, and investors far from convinced, Nanoco needs a new direction. Until the board is brave enough to shake up the management team, it remains a risky bet. Avoid.
