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Property grab gets Green light

Richard Curran The Post
Property grab gets Green light - Ireland - green building

One bank’s misfortune may be another man’s gain. But if there are several banks with heavily devalued properties on their books, there maybe plenty of opportunities for the right investors.

This appears to be the case in relation to Green Property’s two opportunistic deals with Irish banks worth close to €1.8 billion.

It emerged last week that negotiations between Green Property and Anglo Irish Bank over the purchase of a €1billion portfolio of nine properties were coming to fruition.

The sale of the properties to Green by Anglo Irish Bank will be funded by Anglo, with a newspaper report saying the loan would carry a 0 per cent interest rate.

This follows the recent disclosure of details surrounding Green’s purchase of €800 million worth of British properties from AIB at the end of 2008. In both cases, it appeared that Green was getting a very good deal from the banks on loans to buy properties from those banks.

Industry sources have questioned the motivation of the banks in both cases. There are questions about whether financing the purchase of the properties ultimately helped the banks to avoid booking a major loss on the properties. Both cases are different but share some common threads, insofar as the details of the transactions are known.


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