RiverOak
HBM
RiverOak Investment Corp. LLC
RiverOak seems to have been brought into this by Tony Freudmann. RiverOak is a US real estate company that is registered as an LLC in Delaware. This gives RiverOak considerable protection from prosecution. We’ve been looking at some Delaware Supreme Court judgements. As the Court says:
“…ultimately, LLCs and corporations are different; investors can choose to invest in an LLC, which offers one bundle of rights, or in a corporation, which offers an entirely separate bundle of rights.”
We think that TDC (who now has no Head of Legal) has no idea what kind of organisation the Council could be hopping into bed with.
RiverOak says that: "RiverOak funds invest in gap equity positions of $2 million to $5 million per transaction in deals that are typically $8 million to $50 million." So, they don't buy assets outright and they don't typically spend more than $5m.Their most recently launched fund was $50m and some of this money has already been invested. A senior construction industry contact of ours has said that the brownfield land at Manston, if Ann Gloag could get permission to develop it, would be worth around £1m per acre. If he’s right, that 720 acre site has to be well outside of RiverOak’s funding reach.
RiverOak invests in student housing; medical establishments and some domestic housing. The company says that one of their senior managers was involved in the refinancing of Alliance Fort Worth Airport when he/she worked for a previous employer. We can find no evidence anywhere that RiverOak as a company has any aviation experience, and definitely no trace of the company ever having been airport operators. We suspect that RiverOak wants the land for housing.
RiverOak Investment Corporation LLC set up RiverOak Aviation Associates LLC on 3rd July 2014. This suggests to us that Manston would indeed be RiverOak’s first ever foray into aviation. Ann Gloag said in her Gazette interview that she did not like the way that RiverOak/Freudmann did business and that RiverOak was not credible as an airport operator.
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