NAMA selling developer McCabe's prestige UK site for £20m
Published 17/08/2011 | 05:00
A SITE in central London that is owned by property developer John McCabe -- a major borrower with Anglo Irish Bank whose loans are in NAMA -- is expected to be sold for £20m (€23m).
The site at Arlington Street, close to Mayfair, is earmarked to be developed into seven large apartments that could sell for as much as £500,000 (€570,000) each.
The proceeds of the sale will be used to pay part of Mr McCabe's debts to the Irish banks. NAMA would not comment on the sale yesterday.
The bulk of Mr McCabe's loans are understood to be with Anglo Irish Bank.
He was a partner of another big developer, Paddy Kelly, who has racked up huge debts.
McCabe Builders had been working on a number of sites in London and also built Abingdon, the high-profile housing estate in north Co Dublin, as well as offices and commercial units in Ashbourne, Co Meath, and at Sandyford and Blackrock in Dublin.
According to the company's last accounts, McCabe Builders owed the banks €200m.
Mr McCabe struck a deal with Western Gulf Advisory, an asset-management and investment group that saw it take €360m of his debts and invest €48m to fund the completion of a number of its building projects.
This is the second valuable London site that NAMA has moved to sell in recent months. In March, it sold the loan attached to the former US navy building property at 20 Grosvenor Square to a consortium lead by Richard Caring.
NAMA intends to sell 25pc of its London property by 2013 in what is the biggest fire sale of trophy buildings in the English capital.
The properties include the Odeon Cinema site in Leicester Square, the Crowne Plaza Hotel in Shoreditch, a shopping centre in Ealing and apartments in the Docklands.