Wednesday 25 April 2018

Nama to get €80m from Ballymore's sale of Czech development

Development is in the heart of Prague
Development is in the heart of Prague
Sean Mulryan
Peter Flanagan

Peter Flanagan

Sean Mulryan's Ballymore Group has sold a property development in the Czech Republic for more than €80m.

The proceeds of the sale of the Savarin project, in the centre of the Czech capital, Prague, will go to Nama.

The project was purchased by local developer the Creystl Group for €83m.

Another bidder, Flow East, had been threatening to sue Nama in Ireland over the deal but has yet to take action in that regard.

The sale process, which was conducted by Cushman & Wakefield is believed to have attracted 12 initial bids.

Three bids made it to the final phase.

Flow East was said to be disgruntled over how the process was carried out but it is believed there are no concerns about how the sale was conducted.

The winning bid is understood to have been the highest offer for the property, and the deal was completed on Friday.

Ballymore's Paul Keogh confirmed "the sale to Creystl Group, the highest bidders in a sales process run by Cushman & Wakefield" had concluded.

A spokesman for Nama declined to comment.

A former Ballymore executive, Simon Johnson, is chief operating officer of Creystl.

The sale of Savarin is the latest move by Ballymore Group.

The company is considered one of Nama's more co-operative borrowers and is working with the State bad bank to make a clean exit from the agency in line with its business plan.

Ballymore Group has repaid more than €1bn to Nama so far, with more now expected to come.

Malaysia's Eco World is backing it for developments at Arrowhead Quay in the Canary Wharf financial district and Embassy Gardens in south London, and City Island in London's east end.

Another Asian firm, Oxley, is backing it to develop a site on the north docks in Dublin.

Irish Independent

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