The Church of England has lost £40m from a disastrous investment in a buyout of two vast Manhattan housing complexes, Stuyvesant Town and Peter Cooper Village, that collapsed into default after struggling under huge debts incurred at the peak of the US property bubble.
Home to 25,000 people, the two redbrick housing estates comprise 56 buildings along New York's East River. Completed shortly after the second world war, they are known as one of the few remaining bastions of affordable living among the multimillion-dollar tower blocks of lower Manhattan.
They were bought for $5.4bn (£2.86bn then) in 2006 by a consortium led by a New York investment firm, Tishman Speyer, and the fund management group BlackRock, in the biggest US residential property deal on record. But after struggling for months to keep up repayments on loans attached to the buyout, Tishman today handed over the entire estates to its creditors, making the deal a landmark victim of the plunge in property values.
Monday, January 25, 2010
The Guardian reports: