Irish Nationwide managing director Michael Fingleton is under increasing pressure to execute the sale of the building society after it emerged that he will have to leave its board when he turns 70 next January.

For decades the dominant figure in Nationwide, Mr Fingleton will stay on as managing director after January if the sale is not concluded by then.

However, his departure from the board would reduce his influence over the process.

The sale comes at an inopportune time for the society because of the downturn in the property market, its main business sector. In spite of that, it is still considered likely to fetch more than €1 billion.

The appointment of corporate finance advisers is imminent.

About 120,000 qualifying members of the society stand to receive a long-awaited windfall of more than €10,000 each whenever it demutualises. Legislation to facilitate the sale was passed by the Oireachtas in July 2006.

Icelandic bank Landsbanki, the owner of Merrion Stockbrokers, has been examining Nationwide's books for some time and it considers itself the favourite to acquire the institution.

However another contender emerged yesterday in the form of German investment bank Hypo Real Estate. Bank of Scotland (Ireland). Private equity fund Quinlan Private took a serious look at the society but its interest is said to have diminished considerably after it became public last week.

Hypo is understood to have expressed a strong interest in the business when it approached the building society. The German bank has been active in the takeover market in recent weeks, agreeing a deal in July to acquire the Dublin-based public sector lender Depfa Bank.

Depfa shareholders approved the €5 billion transaction on Monday. The deal is scheduled to be approved by the High Court next month.

A spokesman for Hypo declined to comment, as did a spokesman for Irish Nationwide.

However, a Hypo source said the German bank would need to "digest" the Depfa transaction before embarking on a serious bid for Irish Nationwide.

The extent to which the German bank will remain interested in Nationwide after that deal is not clear.

It remains in the race but is not considered a front-runner at this time.

Like Irish Nationwide, Hypo lends money to high-profile property developers, building office blocks and shopping centres.

A takeover of the building society would give it access to some of Ireland's biggest property developers, including Seán Mulryan and Seán Dunne.

US lender GE Capital has also made an approach for the business.