- Apr 8, 2009
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?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.