Nama set to net €17m from sale of West End site
Nama looks set to secure about €17m from the sale of a site earmarked for a Hilton hotel near London's West end tourist spots. This is one of the first development site sales achieved since NAMA took over loans from the Irish banks.
The 1.5 acre site, known as Partnership House, is located at 157 Waterloo Road, London SE1 and it has been sold by its receivers at Edward Symmons to hotel development and management company Shiva Hotels for a sum believed to be close to its £17m (€19.2m) asking price.
Shiva plans to operate a 278-bedroom Hampton by Hilton Hotel, the first hotel under this brand in Central London and one of the largest outside of the US.
Anglo Irish Bank had appointed Richard Haines and Stephen Skinner of Edward Symmons as LPA receivers to the site last year but the mortgage was subsequently transferred to NAMA.
A spokesman for the property's agents CB Richard Ellis Hotels said that construction work had not started on the site. The developers are understood to have agreed a deal some time ago to develop the Hilton and have it ready for opening in 2012.
However the financial crisis meant that funding was not available to the developers to undertake the building work. The site was considered a prime hotel site as it is close to Waterloo Station and is close to many of the tourist attractions of London's West End.
As one of the first development sites to generate funds for NAMA it will add further to the hopes of achieving profits from development loans. Up to now it was felt that Nama's best short-term prospects rested on investment properties in the London retail and office sectors where demand and prices remained strong.
A few weeks ago NAMA secured a deal to realise a profit of almost €150m on a mortgage on another London property where the UK property investors agreed to repay the entire €290m loan.