Posted - 03 Feb 2010 13:52 GMT
updated - 03 Feb 2010 13:53 GMT
Interest free loan for €1bn deal
Anglo Irish Bank is reportedly offering zero interest on a short term loan to Green Property to take on €1bn of assets
Anglo Irish Bank is reportedly in talks to provide an interest free short term loan to the purchaser of a €1 billion real estate portfolio.
The Irish Times newspaper said the purchaser was Green Property, without citing sources.
It also said both Anglo Irish and a second Irish institution, Allied Irish Bank, were keen to avoid selling properties on the market because they were “not financially strong enough” to absorb the losses they would incur.
The properties do not qualify for the Government’s bad bank scheme – the National Asset Management Agency – because they are investment properties rather than development properties, said the Times.
Five of the reported nine properties being sold to Green Property are housed in its €640 million Select Geared Property Fund which was established in 2007.
Reports in October last year suggested Green Property was taking over the management of Anglo's Select Geared Property Fund, for which it will receive a fee.