Dawnay, Day woes continue

BDO Stoy Hayward has seized as collateral almost £1bn of privately-owned property belonging to the troubled London-based investment firm Dawnay, Day.

Dawnay, Day’s problems are mounting with accountant BDO Stoy Hayward having seized almost £1 billion (€1.2 billion; $2 billion) of privately owned property as collateral.

The Daily Telegraph reports that creditors to Dawnay, Day want an orderly sale of assets to recover their loans. Three partners at BDO have been appointed receiver to Starlight Investment and Insureprofit, two property-related parts of the Dawnay group, said the report.

In a separate development, Dawnay, Day Treveria, a London-listed company floated by Dawnay, Day said it had not received sufficient reassurance about the financial stability of its asset manager, Dawnay, Day Investment.

Treveria, which invests in retail property in Germany, did however reassure investors it was solvent.

Earlier this week, two other property companies taken public by Dawnay, Day said they were changing their names to distance themselves from the troubled parent firm.

The Dawnay, Day group is in difficulty because it failed to raise fresh finance and is struggling to meet margins calls from lenders. At the weekend, it appointed accountant Ernst & Young to restructure the group.

As part of the upheaval, the group’s owners, Guy Naggar and Peter Klimt, have been selling shares in Dawnay, Day Sirius – one of the two property companies changing their name.

In a statement, Sirius said the disposals had been made as a result of the forced closing of a leveraged position. At the same time, it has emerged that Laxey Partners has acquired an 8 percent stake in Sirius. Laxey floated Terra Catalyst Fund in London earlier in the year as an opportunistic vehicle looking to invest in undervalued property shares.