Former £ 3.5bn empire investor declared bankrupt after 7 years of fighting
Santander HQ in Madrid
Glenn maud, an investor who during the last boom bought some of the world’s most expensive buildings has been declared bankrupt after losing a nearly seven-year court battle.
The bankruptcy the ordinance comes after a complex legal battle involving the Libyan Investment Authority, former joint venture partner of Maud Derek quinlan and colleague real estate investor in full boom Robert Tchenguiz. The case concerned the property of Santander‘s Madrid HQ, one of the world’s most valuable and exploited real estate assets.
A judge ruled against Maud in her battle in June, and an appeal against the decision failed, leading to the bankruptcy order in November. Maud declined to comment on the order.
Maud built an empire once valued at £ 3.5bn before the 2008 crash, investing either in her own name or through her company, Propinvest.
He bought trophy assets, including Citi’s £ 1 billion London headquarters, using complex financial structures and very high levels of debt.
Its biggest purchase was Ciudad Santander, the 4.3 million square foot headquarters of Spanish bank Santander. Madrid’s head office covers 340 hectares and includes a grove of thousand-year-old olive trees, a championship golf course and a nursery that can accommodate 550 children.
The building was purchased for just under € 2 billion in 2008, with the transaction being completed the same day. Lehman Brothers collapsed.
A group of banks provided 1.575 billion euros of senior debt to finance the purchase, Royal Bank of Scotland provided a junior loan of € 200m and a personal loan of € 75m, and Maud and Quinlan only put in place € 75m of equity, € 12.5 million, of which Maud borrowed from the Libyan fund, created in 2004 to invest the profits from the country’s oil reserves.
The credit crunch brought down the value of the building and the ad hoc vehicle that owned it went bankrupt in 2014. Tchenguiz joined forces with Abu Dhabi Aabar fund in 2010 to buy RBS‘Home and personal loans to Maud and Quinlan to try to take control of the building.
When Maud hasn’t paid off the debts, the LIA and Tchenguiz and Aabar sought to have him declared bankrupt. Maud argued that Tchenguiz and Aabar were only doing this to take control of the Santander headquarters, which would be against bankruptcy laws, and said he tried to repay the LIA but did not could not do so because the sanctions against Libya made its repayment illegal.
The judge in the case finally ruled in favor of the LIA, which owed € 17 million including interest.
He said that although Maud argued he had no assets to repay creditors, he had enough assets to fund years of complex litigation in several countries.
The building was purchased by the Ruben Brothers, who then sold it back to Santander for around € 3 billion.
The legal row over the deal is not yet over, with litigation in Spain still pending that could see Maud recoup some of the profits from the recent sale.