Business Irish

Wednesday 13 December 2017

NAMA sells off over €800m worth of London hotel loans

The Connaught Hotel in London's Mayfair. Photo: Getty Images
Claridge's hotel
Derek Quinlan reporters

THE National Asset Management Agency has sold off over €800m worth of property loans in top London hotels originally purchased by Irish developers in its biggest ever property sale.

The prestigious hotels involved are the five star Claridge's, the Berkeley and Connaught which are all part of the Maybourne group, which were bought by a syndicate of investors including Derek Quinlan and Paddy McKillen back in 2005.

The loans, provided by Allied Irish Banks and the now nationalised Anglo, have been acquired by Sir David and Sir Frederick Barclay who own The Daily Telegraph and NAMA recovered 100pc of the original value of the loans plus interest.

NAMA has to sell €7.5bn of assets by the end of 2013 and this deal will help reach the target.

Ironically NAMA, which is designed to purge the banks of developer loans as they clean up their balance sheets and recapitalise, is one of Mr McKillen’s tenants.

He co-owns the Treasury Building, on Dublin’s Lower Grand Canal Street, where NAMA is located.

Earlier this year, Mr McKillen won a high profile legal battle in the High Court which prevented NAMA from acquiring some €1.4bn in Irish bank loans to 15 companies in his group.

Meanwhile, NAMA chief executive Brendan McDonagh has confirmed that the agency has started a tender process to select a panel of loan sale advisors in both Europe and the US to assist it in selling propertes acquired by the agency which are linked to assets in those markets.

Mr McDonagh was speaking at the Corporate Restructuring Summit held in Dublin today.

NAMA has acquired approximately €600m in loans linked to assets in the United States and €30bn worth of loans linked to assets in the UK and Europe.

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