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Why is Anglo selling €1Bn of Commercial Property to Stephen Vernon pre-NAMA?

MsAnneThrope

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Apr 8, 2009
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Sunday Tribune October 4th: Green to snap up €1bn in Anglo property

Green Property, which owns the Blanchardstown shopping centre, is in advanced talks to acquire about €1bn worth of property from nationalised Anglo Irish Bank.

The company, which is owned by industry veteran Stephen Vernon, its management and Bank of Scotland, is expected to acquire the vast majority of investment properties owned by Anglo, most of which were originally earmarked for syndication to private clients of the bank. When the property market collapsed Anglo was left holding on to the assets.

It is not clear what sort of loss Anglo will make on the properties, many of which were purchased at the top of the market. [...]

It will be Green's second major portfolio purchase this year. In March it acquired a portfolio of British properties after AIB seized them back from Greek businessman Achilleas Kallakis, who is under investigation by the Serious Fraud Office (SFO) and City of London police for alleged fraud against the bank, and sold them on to Green.

AIB supplied €750m of debt to Green to facilitate the purchase. [...]

The government is expected a long term plan from Anglo by November.

It is understood this plan must deal with the sale of property assets that were originally purchased by Anglo for their private clients. During meetings with Anglo staff department [of Finance] officials have impressed upon the bank that excess assets must be sold, even if they return a price well below their original cost.
Could someone kindly explain what exactly is happening here, and why? Whatever happened to the much touted 'Long Term Economic Value' and the perils of selling substantial amounts of property at knockdown prices, especially as Anglo will be the one left short?
 


DCon

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It is €1bn worth of property,but what is it being sold for??
 

Akrasia

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Is it being bought with cash? Or are Anglo lending them the money to 'buy' the assets?
 

MsAnneThrope

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I know NAMA is designed to take over 'bad loans' and not property directly. But if the whole NAMA concept is being built on a recovery down the road in property prices, why is nationalised Anglo offloading commercial property now at prices that will certainly realise substantial losses, given that many were "purchased at top of the market"?

And is NAMA going to take over any other Vernon/Green loans that may not be performing, allowing and affording them time to snap up other properties at knockdown prices in the meantime, then sitting on them hoping they appreciate in value?

I have no idea how the deal is being financed but it's a limited pool of lenders here.
 

ang

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What sort of losses will be incurred on these assets. Will we have a billion less of loans from Anglo for NAMA. If we have deals on this why can't the banks offload some of their loan book onto the market, No debating it now, we've definitely got a market, contrary to what our politicians would have us believe.
 

Newsy

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Sunday Tribune October 4th: Green to snap up €1bn in Anglo property



Could someone kindly explain what exactly is happening here, and why? Whatever happened to the much touted 'Long Term Economic Value' and the perils of selling substantial amounts of property at knockdown prices, especially as Anglo will be the one left short?
It's not Anglo that will be left short.......IT IS US :mad:
 

nedbroe

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GAvinsblog/

You might also usefully aslk whether Mr Lenihan had meetings with Gerry Beade, and if so, the purpose of any meetings and their locations.

here at the Castle I recall that Mr Beade, through his company provided at least one invoice to the Mahon Tribunal for work done on Beresford for The Bert. Mr Beade, has in recent times, made it to the airwaves to highlight the plight of developers and to complain about labour costs here. He also pops up from time to time in the SINDO.
 

cactusflower

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Oct 1, 2008
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Do we know what the property is?

Its simply not sense to hold on to property for a decade leaving it empty. You are losing rent and it is costing money to maintain.

Land can be parked, but the only way to hold on to buildings is to rent them out. Of course, when we are as overshopped as we are, there aren't takers for all of it.

I'd like to know why these assets weren't auctioned off - why a private sale ?
It seems mad.
 
Joined
Aug 6, 2007
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Do we know what the property is?

Its simply not sense to hold on to property for a decade leaving it empty. You are losing rent and it is costing money to maintain.

Land can be parked, but the only way to hold on to buildings is to rent them out. Of course, when we are as overshopped as we are, there aren't takers for all of it.

I'd like to know why these assets weren't auctioned off - why a private sale ?
It seems mad.
Nope it doesn't as if you read the article it stated that Anglo initially had buyers for all but they pulled out.

Best people to run a property business are people who are good at it and Green are pretty good at it.
 

Eamonn76

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Aug 26, 2009
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What sort of losses will be incurred on these assets. Will we have a billion less of loans from Anglo for NAMA. If we have deals on this why can't the banks offload some of their loan book onto the market, No debating it now, we've definitely got a market, contrary to what our politicians would have us believe.
You are quite right. Nama should not pay anything without either comprehensive risk sharing if LTEV is less than market value or releasing enough properties to establish market value.
 

Jock_the_Waster

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May 19, 2009
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Citizens of a Republic do not need to be elected to office to have a duty of vigilance.
thats true, I hear certain previously unmotivated individuals are arming themselves to the teeth.

time we had a real republic, enough of the hijackers
 


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