Nama nixed Malay deal to buy Treasury's loans
Published 29/01/2012 | 05:00
Nama, the lumbering State bad bank, is believed to have turned down a straight cash offer for the full amount of a loan associated with Treasury Holdings' ambitious project at Battersea Power Station.
It is understood that Malaysian investment group Setia offered to buy Treasury's €120m Bank of Ireland loan that had transferred to Nama. Setia approached Nama through Deutsche Bank last year to offer to buy the loan at its full value plus interest.
Nama did not follow through on the offer. The €80bn state body has been widely criticised for its failure to do deals or to engage with potential buyers.
Recently, the Sunday Independent revealed that the UK Durkan Group had paid off all its Nama loans as it became frustrated with the lack of progress in refinancing "good" loans with the agency.
Last December, Nama and Lloyd's Bank had an administrator appointed to the €6.4bn landmark development project. Ernst & Young is seeking a buyer for the site.
Nama sources indicated that the Battersea loans were held jointly by Lloyd's and Nama, with Lloyd's as the lead bank on the loans. Nama had "no comment on market rumours regarding offers", according to the agency.
Last week Nama moved to appoint a receiver to Treasury Holdings, owned by the flamboyant duo of Johnny Ronan and Richard Barrett. Treasury took legal action following the move.
A court hearing on the matter will take place in just over three weeks.
Sunday Indo Business