Halabi loses control of seven blocks over a loans default

Simon Halabi, a one-time star of the London property world, has lost control of seven office blocks in the capital after defaulting on £1.15 billion of loans.

The offices, which include Aviva Tower, the headquarters of the former Norwich Union giant, and buildings housing staff of the investment bank JPMorgan on the Embankment, are set to fall into the hands of the insolvency accountants Ernst & Young.

At one stage Syrian-born Halabi, 51, was rated a billionaire and amongst Britain's top 20 richest people. Halabi borrowed £1.45 billion against nine London properties in 2006 when they were valued at £1.83 billion.

At their most recent valuation however the properties were given a market price tag of just
£923 million.

Of Halabi's borrowings, £1.15 billion were packaged into bonds managed by the property group CB Richard Ellis, the borrowings which have sparked the default.

The receivership is believed to have been triggered by claims for back tax of £4.77 million on the properties from HM Revenue & Customs.