Tuesday 23 January 2018

IBRC liquidator KPMG to start selling off bank's UK loan book

Thomas Molloy

Thomas Molloy

THE special liquidator for IBRC is set to begin selling off the former bank's UK loan book, industry reports said yesterday.

Liquidator KPMG is due to appoint Savills, Jones Lang LaSalle, Allsop and CBRE to a panel of valuers that will place a new value on the assets backing IBRC's UK commercial property loan book, which is currently valued at €7.9bn, the report by property specialists CoStar Finance says.

The same four companies valued the bank's loans back in 2011.

KPMG declined to comment.

The special liquidator must value around 2,000 buildings spread across Ireland, the UK and the US over the next few months and then sell the loans underlying the buildings.

The valuation process is likely to be extended quickly to Ireland where a loan book valued at €10.25bn has to be looked at again.

Reports say the valuation panel here, which will be due to report back by May, is likely to include Savills, JLL and CBRE.

IBRC sold most of its US loans to Lone Star, Wells Fargo and JPMorgan in 2011.

Borrowers will be offered the chance to "buy back" their own loans at the new value. Loans will be sold on to third-party investors or NAMA if the borrowers decline or are unable to redeem their loans.

The Government and Finance Minister Michael Noonan have set the special liquidator an August deadline for winding down the former IBRC's €27.53bn loan book.

Irish Independent

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