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Sunday 19 November 2017

Anglo loan book to be opened for inspection ahead of sale

THE loan book of former Anglo Irish Bank will be opened for scrutiny for the first time later this month when it goes up for sale.

Buyers will get a first glimpse of the assets left behind by the collapsed bank – now known as IBRC – on September 16 when its liquidators open up the four portfolios of loans on offer. These include €7.8bn of UK commercial property loans, a €1.8bn Irish residential mortgage book and a €9.3bn commercial real-estate book, which investors will likely get a look at later in September.

But the most interesting portfolio for private equity investors, says Gavin Loughrey, partner at Alchemy Partners LLP, is the first that investors will get a look at, the so-called 'Project Evergreen' pool of €3.5bn of business loans, which includes a 50pc stake in Dublin department store Arnotts and Fields Jewellers.

The liquidators, KPMG, have until the end of the year to sell the assets, or transfer them to NAMA.

Bidders will have four weeks to study detailed financial information on the bank's business loans before submitting indicative bids for this portfolio; those would then be assessed and a second round would be pursued if appropriate, a source familiar with the process said.

KPMG declined to comment on the process.

An independent valuation of the assets is being carried out by UBS, and under the sale process, assets will only be sold if bids exceed their valuation. If they do not, the assets will be transferred to NAMA at the valuation given by UBS.

Any difference between the sale value and the values the assets were held at in IBRC's books will be closely watched, since it will be interpreted as an indication of whether IBRC's abrupt death was a financially prudent decision.

Irish Independent

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