Lloyds seeking to put Targetfollow into administration

The Lloyds Banking Group is seeking approval to put Norwich-based property developer, Targetfollow, into administration.

The bank has applied for court approval for the move after a third of the overall debts of £700 million ($1.1 billion) owed to the bank by the company expired over the summer. The property company has a huge portfolio of prime London commercial property, including the Centre Point tower in the West End as well as a large City of London office development dubbed the “Can of Ham”.

Targetfollow has vigorously fought the threat of administration, enlisting the help of four of its local MPs and attempting to sell assets and bring in new equity partners. Speaking last week, Targetfollow's chairmand and founder, Ardeshir Naghshineh, chairman and founder, said, “We have presented a number of viable solutions to Lloyds but they have all been rejected out of hand.

“We have no intention of giving up, particularly as the independent valuations of our properties far exceed those put forward by Lloyds’ valuers. Sales and offers in the past few months show that, if anything, the independent valuations were on the conservative side.”

Lloyds has the largest book of real estate debt in the UK market and has previously declared its intention to reduce its exposure. Much of the debt was assumed through the acquisition of HBOS.

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