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Property tycoons lose £560million as shares nosedive in credit crunch
24 January 2008
But today Robert Tchenguiz is not quite so rich. According to one estimate, he and his brother Vincent have lost a staggering £560million in the past weeks.
But no one should feel too sorry for Mr Tchenguiz. One report recently put the brothers' wealth at £850million, so a back-ofthe-envelope calculation — and with the brothers as secretive as they are, back of the envelope is as close as anyone gets — would still put their worth at just under £300million.
When asked whether he was going to get rid of his Monaco-moored yacht, Mr Tchenguiz said: "I love my boat. I have no intention of selling it. I've lost a lot of money but I'm not in trouble. It's just taking the rough with the smooth."
The Tchenguiz wipeout has been caused by a fall in the paper value of three of the brothers' investments in 12 weeks, thanks to collapsed corporate deals and the plunge in market confidence.
The share prices of Sainsbury's, pub group Mitchells and Butlers and games firm SCi Entertainment have all declined.
Mr Tchenguiz became a Sainsbury's investor last year when the company was anticipating a takeover and shares were 525p. The deal did not come off, a second bidder also walked away, and the shares have lost a third of their value.
The tycoon, who allegedly introduced Princess Diana to Dodi Fayed, also suffered losses from Mitchells and Butlers, the firm behind All Bar One, O'Neill's and Harvester.
Since November shares have fallen by 40 per cent.
It is a similar story at SCi, the company behind Lara Croft Tomb Raider games. Shares have lost 83 per cent of their value since November.
The Tchenguiz empire has also been hit by a tough spell at Somerfield.
The Tchenguiz brothers began renting flats to tourists and students.
By the late Eighties they were big players in commercial property with projects like the Windsor Plaza in Hammersmith, and in the early Nineties their empire grew.
Although still known for his hospitality, Tchenguiz is keen to put his playboy days behind him. He is in a relationship and has a daughter aged three.
The Tchenguiz portfolio
Sainsbury's
Tchenguiz emerged as an investor last year when shares were 253p and the company was anticipating a takeover. But the deal did not come off and in November shares fell when a second potential bidder also walked away. Shares have since lost a third of their value.
Mitchells & Butlers
Tchenguiz began buying shares close to 500p, but has paid 700p. Since November shares have fallen by 40 per cent.
SCi Entertainment
The publisher of the Lara Croft Tomb Raider computer games announced this month that talks with possible bidders had failed and that it was seeking an urgent injection of cash. Shares have lost 83 per cent of their value since 5 November.
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