There is an interesting story just released by The Daily Telegraph, on its Web site. It is about the Candy brothers, two of the most famous and rich property developers in the US. These self made billionaires who live in Monaco, have created their fortune dealing with luxury homes, but this time they are losing an eight acre site in Beverly Hills that is going up for auction after they defaulted on a $ 365.5 million loan. Apparently they paid this parcel of land $ 500 million, just before the real estate bubble burst, but the price was already quite high then and they surprisingly overpaid for it for a lack of due diligence (here is the original article).
The golden egg kids have laid a big egg this time.
Last year they had won a suit against four British elderly con men that managed to sell them a land in Berkshire they didn’t own and collected with fraud £ 6.5 million. The British Land Registry was also conned and let the transaction move forward based on false documents, so the Candy brothers were reimbursed of their loss by the Land Registry itself; but still one would have expected a much closer due diligence for such a major purchase. And there are more controversies piling up around these two brothers that seemed always right in any transaction they did.
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