NAMA recovers value of London-hotels loans in €800m sale
The National Asset Management Agency (Nama) has sold the Claridges, Connaught and Berkeley hotels in London for €800m.
Nama confirmed the sale of loans taken out by a group of Irish investors in 2005.
The investment was made by a syndicate which included Paddy McKillen, the Belfast-born developer and property investor who fought Nama's legitimacy in the Irish courts, and stockbroker Kyran McLaughlin of Davy Stockbrokers. Both men had already sold their stakes.
Nama acquired the loans at the end of June 2010 from the banks. It has recovered 100% of the original value of the loans, plus interest, in the sale.
The hotels had been bought by the Maybourne Hotel Group, headed by tax man-turned-financier Derek Quinlan, who now lives in Switzerland.
Owners of The Daily Telegraph, David and Frederick Barclay, have secured the deal under the Maybourne Finance Limited company.
Nama billed the sale as a good one for the Irish taxpayer who has funded the clear out of failing development- and property-linked loans from five crippled Irish banks.
It said: "The loans were sold for in excess of 800 million euro with Nama recovering 100% of the original value of the loans plus interest."
Nama bought the loans from banks at the end of June 2010 at a discount.
Allied Irish Banks and Anglo Irish Bank, now in State control, lent the money for the original deal.
It was secured two years before Ireland was hit by one of the most expensive banking collapses in history and the deal had been viewed around the world as a major coup for the investors.
It is believed Malaysian and Chinese syndicates had also been eyeing the deal at the time.
Nama announced earlier this month that 14 paintings from Mr Quinlan's art collection were also being sold off to repay some of his debts.
Ironically the works include an Andy Warhol 'Dollar Sign' with a guide price of up to €439,000 and a Jack B Yeats piece entitled 'Man Doing Accounts'.
A one-night stay for a couple at the luxury five star Claridges in London's Mayfair at Halloween would set you back anything from £429 (€493.95) for a room only.
