Lloyds plans €1bn Irish sell-off
British bank Lloyds plans to put €1 billion-worth of Irish property into receivership as it accelerates the closure of the loan book of the former Bank of Scotland (Ireland).
The plan will affect hundreds of properties, including hotels, shops, office blocks and residential developments.
It is understood that the bank will ramp up its receivership activity early in the new year.
Lloyds stuck a deal earlier this year with Irish firm Green Property to manage at least €1 billion worth of Irish loans. However, it has emerged that Lloyds plans to put the companies behind the loans into receivership first, and allow the receivers to decide whether or not to use Green's asset management services.
Some properties are likely to be sold during the seven-year deal with Green, although the bank has not ruled out creating a property fund that could be sold on in one or more pieces. The bank has described the plan as "a medium-to-long-term solution for the Irish property market, where the challenges are significant".
Bank of Scotland (Ireland) banked dozens of hotel developments during the boom years.
It was the lender to Ashford Castle, which was last week put into receivership with the agreement of the hotel's owner, developer Gerry Barrett.
Tuesday, December 6, 2011
Lloyds plans €1bn Irish sell-off
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