Nama and Treasury in talks on €900m loans

THE NATIONAL Asset Management Agency is evaluating two investment proposals from Treasury Holdings relating to its near €900 million in outstanding loans, including one from Australian investment and advisory group Macquarie.

The Irish Timeshas learned that detailed negotiations have taken place between Nama and Treasury in recent days as the developer seeks to avoid losing control over a large portfolio of properties and assets in Ireland.

It is understood that Nama has demanded repayment of the loans by Wednesday next. However, informed sources indicated yesterday that this deadline could be extended if there is a realistic prospect of a deal being reached on Treasury’s loans with Nama.

It is not clear what role Treasury would have in the portfolio of assets under question if one of the investment proposals was accepted by Nama. However, the developer, jointly owned by businessmen Richard Barrett and Johnny Ronan, would be expected to have some future involvement in managing or developing the properties.

The debt relates to Treasury and Real Estate Opportunities, a UK-listed company in which the Dublin-based developer owns a majority stake. Treasury is one of Nama’s 10 biggest borrowers.

It is understood that Treasury has argued in recent times that it should be allowed to continue to manage its portfolio of properties on the basis that this offers the best potential return for the exchequer on its borrowings.

It recently agreed a new lease deal with international social media company LinkedIn to rent extra space at its Wilton Plaza building in Dublin. This deal is believed to be worth €1.5 million.

However, Nama appears to have lost patience with Treasury recently following many months of negotiations. If Treasury does not meet the deadline, Nama is expected to move to appoint a receiver to certain properties in Ireland.

Treasury’s portfolio of assets here includes the Spencer Dock development in Dublin’s Docklands and the Convention Centre Dublin, which receives an annual subvention from the State. It also developed the luxury Ritz Carlton Hotel in Enniskerry, Co Wicklow.

Treasury has already lost control of Battersea Power Station in London. Last month, Lloyds Bank and Nama succeeded in having Ernst Young appointed as administrator to the high-profile development site.

Treasury’s interest in Battersea was held through its majority stake in REO. Its acquisition of Battersea in 2006 was part funded by Bank of Ireland, whose loans were transferred to Nama in 2010.

Neither Treasury nor Nama was willing to comment on their negotiations yesterday.