Sermons may be inspiring pew-kneelers towards greater piles on the collection plates in the upcoming months/years after a £40m bad investment blow to the Church of England.
The crime scene of the economic storm can be viewed along the East River, identified by two red brick complexes totaling 56 buildings, known as Stuyvesant Town and Peter Cooper Village.
Bought in 2006 by the investment firm Tishman Speyer and the fund management group BlackRock for $5.4bn (£2.86bn then). Even with efforts like hiring private detectives in an attempt to get veteran residents to pay more rent and cutting “rent-controlled” deals, Tishman and its partners came short on payment of their $16m mortgage payment this month.
This past Monday, Tishman handed over Stuyvesant Town and Peter Cooper Village complexes to its creditors. “We make this decision as we feel a battle over the property or a contested bankruptcy proceeding is not in the long-term interests of the property, its residents, our partnership or the City,” Tishman said.
The Church had invested funds for a 4% equity stake in Stuyvesant Town. The investments are intended to support the Church of England’s running costs, including the pensions of clergy. The hit affects less than 1% of the church’s asset portfolio.