Seen & Heard: Danske Bank to sell off unsecured debts

Bank of Ireland to buy Lone Star home loans; Nama set to offload Gresham Hotel

Danske Bank sell-off

The Sunday Business Post reports that Danske Bank is to sell off the unsecured debts of thousands of borrowers, including credit card bills, legal judgements, overdrafts and personal guarantees. It claims that while so-called vulture funds are unlikely to bid for this loan book, the likes of debt collection agencies and payday lenders will be competing. The loans are likely to be sold at a tiny percentage of their face value, according to the paper.

Lone Star retreats

The Sunday Times reports that American private equity firm Lone Star is selling some of the home loans it acquired two years ago to Bank of Ireland, signalling the start of a retreat by vulture funds from this market. Lone Star two years ago bought former Irish Nationwide mortgages at a discount from the liquidators of State-owned IBRC.


Nama to sell Gresham

The National Asset Management Agency is set to make €60 million from the sale of the Gresham Hotel on O'Connell Street, according to a report in the Sunday Business Post. It claims the loans associated with the hotel were bought for between €30 million and €40 million, while the 323-room hotel is expected now to sell for over €100 million.

Nama raises interest rates

The Sunday Business Post reports that Nama is increasing the interest rates it charges developers it is working with on joint ventures. It describes the move as a counter strike against a different group of developers who are challenging Nama’s plans to build up to 20,000 homes in the next four years. The challenge is based on the argument that Nama charges a lower rate of interest to developers it is working with.