Property price falls complicate matters for IBRC liquidation

We learned last week that UK insurer Royal London is preparing to absorb a price drop of more than 50 per cent on two AIB branches that it bought in Wexford and Kilkenny in a sale and leaseback deal in 2007.

It’s eye-watering stuff and won’t be music to the ears of the special liquidators of IBRC, who bear responsibility for off-loading the network of Irish Nationwide branches among their many other duties.

At latest count, agents DTZ had managed to progress roughly 15 of these properties to the magic "sold" status, having launched the portfolio of 50-plus outlets on the market in late 2011.

No mean feat
It has been no mean feat for the agent, given the known weakness of the market in some of the locations involved – Nationwide's network extended through market towns in all four provinces.

A further 13 or so former branches have been “sale agreed” by DTZ, a status that is encouraging but promises no firm outcome until a dotted line is signed.

The unexpected liquidation of IBRC earlier this year is likely to be injecting some unwanted delays into the process.

The remaining unsold properties include the former Nationwide outlet at the bottom of Dublin’s Grafton Street, which is being sold in two parts – the upper floors and, separately, the ground floor and basement.