ANGLO IRISH Bank will transfer close to €10 billion in loans into the National Asset Management Agency (Nama), accounting for the largest amount owed by the top 10 developers moving to the agency in the coming weeks.
The Irish Timeshas established the identities of the top borrowers being moved in the first wave of transfers to the State agency.
They are developers Liam Carroll; Bernard McNamara; Sean Mulryan of Ballymore; financier Derek Quinlan; Paddy McKillen, owner of the Jervis Street Shopping Centre; Treasury Holdings, which is owned by Johnny Ronan and Richard Barrett; Cork developer Michael O’Flynn; Joe O’Reilly, the developer behind the Dundrum Shopping Centre in Dublin; Dublin builder Gerry Gannon, co-owner of the K Club golf resort in Co Kildare; and Galway businessman Gerry Barrett, owner of Ashford Castle in Co Mayo and G Hotel in Galway.
More than €16 billion in loans linked to the top 10 are being moved to Nama out of a total of €80 billion being transferred.
The transfer of the top 10 borrowers’ loans has been delayed due to the vast amount of paperwork demanded by the agency.
Nama has told the five participating institutions over recent days that it would not be able to provide a schedule of the first loans to be acquired – and the discount or “haircut” to be applied by the State to the loans – as planned due to delays in the valuation and legal process. The transfers of the top 10 borrowers are expected to be ready by the end of this month, though the Nama plan awaits EU approval.
The scale of the work has delayed the transfer of the top 10 from the initial target of the end of last year.
Anglo is understood to have held up the process as it completes legal paperwork and valuations on a small number of properties owned by the top 10 borrowers.
State-owned Anglo is transferring the largest initial amount among the 10, followed by AIB with about €3 billion and Bank of Ireland with about €2 billion. Irish Nationwide is moving about €1 billion in the first transfers, followed by the EBS building society, which is moving about €900 million into Nama.
The State will buy the loans at a discount which may be higher than the average 30 per cent estimated by the Government last September on the biggest loans.
The discount applied to some institutions is expected to be higher than to others. Properties and assets backing the €1 billion Irish Nationwide loans are estimated to have been assessed over recent weeks at about half that value.
Nama is taking over development loans as well as associated loans secured on assets such as investment properties provided as collateral for development loans.
A significant number of the associated loans are being serviced with repayments by borrowers.
Almost a third of Anglo’s loans in the first tranche of 10 are yielding repayments, while more than half of the bank’s loans are associated loans secured on investment properties which are generating cash repayments.