Simon Halabi
Encyclopedia
Simon Halabi is a Syrian-born in Damascus Syria, he is a businessman formerly based in the United Kingdom. He is married to Lithuanian born Urte and has two sons, Samuel and Jacob. Samual died in August 2003 in a pool accident in France.
His wealth derived initially from his family - his father was a successful businessman in Syria and backed his son in his early ventures. Embarking on a series of speculative property ventures, he amassed a sizeable fortune himself. In the Sunday Times Rich List 2007
he was ranked 14th richest person in Britain, while the Forbes
list of global billionaires listed him at #194 in 2007, with an estimated net worth of $4.3billion. In 2009 Forbes ranked him #224 with a reduced net worth of $2.8billion.
Although he remained an intensely private man, he was fond of conspicuous consumption
, owning a large fleet of luxury cars including Bentley
s and Rolls Royce Phantoms, as well as a 130 ft yacht.
.
January 2008 saw the former tycoon forced to sell his one third stake in the flagship Shard of Glass
development in London for £30m - a stake that had been valued at over £130m just six months earlier. Later that year, the Mentmore Towers
project, which Halabi had purchased in 1997, with a view to turning into a six star hotel, ran into problems. The grade II listed building was mothballed, with essential maintenance work remaining undone as the project architects sued Halabi for unpaid fees. During summer 2008 English Heritage ranked three of Halibi's assets as "Buildings at Risk" showing their concern about the future for the important listed buildings concerned, and their maintenance.
In June 2009, his group of property companies defaulted
on $1.9billion of bonds. The debts in question had been secured on nine London properties, which had fallen in value by up to 50% since the start of the credit crunch
, leaving them in negative equity
, and in August 2009 insolvency specialists MCR were appointed as liquidators of Buckingham Securities Holdings, Halabi's principal client advisory vehicle.
By October 2009 Halabi's Anglo Swiss Holdings company began to liquidate assets including the attempted sale of the central London Cambridge House
building previously known as the In and Out Club in Picadilly.
On 1 April 2010, he was declared bankrupt in High Court
in London. He was not present for the bankruptcy proceedings and was not represented by anybody. His current whereabouts are unknown - his last known address was reported to be a hotel room in Switzerland.
Aviva Tower, part of the Halabi's White Tower portfolio was eventually sold for £288m in April 2011. It was originally purchased in 2003 for £260m.
His wealth derived initially from his family - his father was a successful businessman in Syria and backed his son in his early ventures. Embarking on a series of speculative property ventures, he amassed a sizeable fortune himself. In the Sunday Times Rich List 2007
Sunday Times Rich List 2007
The Sunday Times Rich List 2007 was published on 29 April 2007. The online edition was published on 30 April 2007.Since 1989 the UK national Sunday newspaper The Sunday Times has published an annual magazine supplement to the newspaper called the Sunday Times Rich List...
he was ranked 14th richest person in Britain, while the Forbes
Forbes
Forbes is an American publishing and media company. Its flagship publication, the Forbes magazine, is published biweekly. Its primary competitors in the national business magazine category are Fortune, which is also published biweekly, and Business Week...
list of global billionaires listed him at #194 in 2007, with an estimated net worth of $4.3billion. In 2009 Forbes ranked him #224 with a reduced net worth of $2.8billion.
Although he remained an intensely private man, he was fond of conspicuous consumption
Conspicuous consumption
Conspicuous consumption is spending on goods and services acquired mainly for the purpose of displaying income or wealth. In the mind of a conspicuous consumer, such display serves as a means of attaining or maintaining social status....
, owning a large fleet of luxury cars including Bentley
Bentley
Bentley Motors Limited is a British manufacturer of automobiles founded on 18 January 1919 by Walter Owen Bentley known as W.O. Bentley or just "W O". Bentley had been previously known for his range of rotary aero-engines in World War I, the most famous being the Bentley BR1 as used in later...
s and Rolls Royce Phantoms, as well as a 130 ft yacht.
Downfall and bankruptcy
In late 2007 the sports gym chain Esporta, which he had purchased for £460m, was forced into administration, costing Halabi at least £120m of his own money, as well as damaging his relationship with his main creditors Société GénéraleSociété Générale
Société Générale S.A. is a large European Bank and a major Financial Services company that has a substantial global presence. Its registered office is on Boulevard Haussmann in the 9th arrondissement of Paris, while its head office is in the Tours Société Générale in the business district of La...
.
January 2008 saw the former tycoon forced to sell his one third stake in the flagship Shard of Glass
Shard London Bridge
Shard London Bridge is a skyscraper under construction in Southwark, London. When completed in May 2012, it will be the tallest building in the European Union and the 45th-tallest building in the world, standing tall...
development in London for £30m - a stake that had been valued at over £130m just six months earlier. Later that year, the Mentmore Towers
Mentmore Towers
Mentmore Towers is a 19th century English country house in the village of Mentmore in Buckinghamshire. The house was designed by Joseph Paxton and his son-in-law, George Henry Stokes, in the revival Elizabethan and Jacobean style of the late 16th century called Jacobethan, for the banker and...
project, which Halabi had purchased in 1997, with a view to turning into a six star hotel, ran into problems. The grade II listed building was mothballed, with essential maintenance work remaining undone as the project architects sued Halabi for unpaid fees. During summer 2008 English Heritage ranked three of Halibi's assets as "Buildings at Risk" showing their concern about the future for the important listed buildings concerned, and their maintenance.
In June 2009, his group of property companies defaulted
Default (finance)
In finance, default occurs when a debtor has not met his or her legal obligations according to the debt contract, e.g. has not made a scheduled payment, or has violated a loan covenant of the debt contract. A default is the failure to pay back a loan. Default may occur if the debtor is either...
on $1.9billion of bonds. The debts in question had been secured on nine London properties, which had fallen in value by up to 50% since the start of the credit crunch
Credit crunch
A credit crunch is a reduction in the general availability of loans or a sudden tightening of the conditions required to obtain a loan from the banks. A credit crunch generally involves a reduction in the availability of credit independent of a rise in official interest rates...
, leaving them in negative equity
Negative equity
Negative equity occurs when the value of an asset used to secure a loan is less than the outstanding balance on the loan. In the United States, assets with negative equity are often referred to as being "underwater", and loans and borrowers with negative equity are said to be "upside down".People...
, and in August 2009 insolvency specialists MCR were appointed as liquidators of Buckingham Securities Holdings, Halabi's principal client advisory vehicle.
By October 2009 Halabi's Anglo Swiss Holdings company began to liquidate assets including the attempted sale of the central London Cambridge House
Cambridge House
Cambridge House is a grade I listed mansion on the northern side of Piccadilly in central London, England. It was built for Charles Wyndham, 2nd Earl of Egremont, by architect Matthew Brettingham in 1756-1761. It was initially known as Egremont House. The house is in a late Palladian style. It has...
building previously known as the In and Out Club in Picadilly.
On 1 April 2010, he was declared bankrupt in High Court
High Court of Justice
The High Court of Justice is, together with the Court of Appeal and the Crown Court, one of the Senior Courts of England and Wales...
in London. He was not present for the bankruptcy proceedings and was not represented by anybody. His current whereabouts are unknown - his last known address was reported to be a hotel room in Switzerland.
Aviva Tower, part of the Halabi's White Tower portfolio was eventually sold for £288m in April 2011. It was originally purchased in 2003 for £260m.