Mulryan-backed firm buys 47 New York sites

THE SÉAN Mulryan and Paddy Kelly-backed Markland Holdings has bought 47 New York properties from Citibank for close to €60 million.

Markland bought the properties from Citibank NA, part of the retail arm of multi-national bank, Citigroup, for $87.5 million (€64.8 million) in a sale and leaseback deal. Citigroup confirmed last night that it "recently completed" the sale of its 47 properties to Markland. It added that the branches were located in the New York City metropolitan area.

The bank intends leasing the properties back from Markland for the next 15 years, with the option of taking a further 15 years when that period is up.

Citgroup is one of a number of US and multinational banks left reeling in the fallout from the sub-prime mortgage lending crisis.

It is planning to lay off 17,000 people worldwide. Of these, around 1,800 will go in the New York region alone.

Citigroup said that the deal was part of its "long-term plan to reduce real estate holdings and redeploy capital resources into its operating businesses".

The 47 branches amount to a total of 15,000 sq m.

While property markets in most of the US have stalled, the weakened dollar has made prices there attractive. It is understood that Mr Kelly was in New York this week, although attempts to contact Markland yesterday were unsuccessful.

Mr Kelly and Mr Mulryan have been involved in various ventures for close to two decades through the Markland vehicle.

Mr Kelly is involved in a number of businesses, but is primarily associated with developer Kelland Homes. His other businesses include Kilshane Environmental, Eco Tech Industries and he is also involved in builders' supplies operations.