Business Irish

Saturday 21 April 2018

Sales of distressed properties are providing healthy returns

NICE work if you can get it. An intriguing little note posted to the stock exchange shows how the specialists who can get big, complex property deals over the line are cleaning up as sales of high-end distressed property increase.

The note is part of the tidying up after the battle between international bidders for Treasury Holdings' former Opera Finance property assets and is being celebrated as a real sign of life in the commercial property market.

It reveals that of the €306m paid by US investors Kennedy Wilson and Varde for the portfolio of 16 shops and office buildings, €302.7m is available for distribution to the bondholders who actually sold the assets. In some cases it means getting back 100pc of what they are actually owed. Others will receive a fraction of the debt.

The rest – €3.3m, or very nearly 1pc of the total paid – will "cover costs, fees and expenses" arising from the sale.

German bank Eurohypo and its advisors Cairn Capital in London will book a nice whack of that.

At the Irish end of things, the huge sale was actually executed by David Hughes and Luke Charleton of Ernst & Young in Dublin, who acted as receivers over what has proved to be a valuable slice of the Irish property market.

Indo Business

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