€75m of Irish bank-controlled property comes onto market in one job lot

€75m of Irish bank-controlled property comes onto market in one job lot

October 1, 2012 by namawinelake

There is now a steady stream of bank-owned Irish property coming onto the market in spite of the uncertain economic outlook and the certain scarcity of finance. On Saturday last, the Belfast Telegraph reported that Bank of Scotland/Certus was bringing a GBP 7m (€9m) portfolio to the market, a portfolio which comprises 14 pubs, an hotel and commercial space. Osborne King are the selling agents – though the portfolio doesn’t yet appear to be online. The BelTel reported that the property was owned by pub landlord Harry Diamond.

And last week, it was Neil Callanan, the former business editor at the Sunday Tribune, now at Bloomberg who reported that on this side of the Border, the Royal Bank of Scotland/Ulster Bank is bringing a mixed portfolio, dubbed “Project Gemini”, to the market with a price tag of €75m according to Bloomberg. The selling agents are Savills and the listing is here and the brochure is here. The portfolio comprises 640 apartments, most in Dublin-some in Cork, an hotel and 200,000 sq ft of commercial space. With an annual rent roll of €5.5m, the reported asking price represents a notional yield of 7.3%. Who would buy such a mixed bag? Difficult to say, the Irish generally don’t have the finance but the portfolio looks as if it needs local management.

We should shortly get a trading update from NAMA as the Q2, 2012 accounts were due to be delivered to Minister for Finance Michael Noonan last week, but according to the Comptroller and Auditor General’s report on NAMA published over the summer, NAMA is generally hoarding its Irish assets as it focuses on disposing of the overseas globally dispersed assets. Outside NAMA, AIB has been flogging loan portfolios. Bank of Ireland appears to be reining in its disposals and IBRC seems to be mirroring NAMA (again!) with not very much coming onto the market. It may be the two British banks that lead the way with imminent disposals as they run for the hills.

via NAMA Wine Lake.

via NAMA Wine Lake.

I wonder who the buyers are? Maybe the friends of the friends