Robert Ware, CEO of Convgar Investment Company predicted at the annual general meeting of the company last week about the difficulties in 2011 for the country as the banking issues comes to a head and economy unwinds. With total facilities and cash instead of £110m Robert argues that his company was well placed in such an atmosphere.
He asked the government supposition if the job cuts from the public sector will be replaced by the private sector. “I don’t think that’s going to happen as the banks aren’t lending to small businesses. We are going to have lots of redundancies. Unless companies are actually making a profit from their underlying businesses they can’t afford to pay for the rent.” Robert continued to state the resultant pressure on rents across the country. The high value of rent outside London is a great issue and I think it is going to increase in the coming time”.
The Irish banking crisis seems to continue and the coalition government is probable to sell the RBS and Lloyds shares prior to the next election, Robert also predicted that year 2011 would be a year which will make the banks to deal with their balance sheet issues. They cannot put it off any longer and those placed in cash will enjoy nice opportunities”.
Convgar raised £70 million of equity 15 months ago so as to be placed well to provide liquidity for such kind of deals.
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