TREASURY HOLDINGS IS calling for the appointment of a third party to negotiate with potential overseas investors in Irish property and loan portfolios to “secure the best deal for NAMA and the taxpayer”.
Treasury said today in a statement that a range of potential investors had expressed interest in Irish property, with some making substantial bids for property portfolios including the company’s own loans.
However, it added that none of these bids were accepted by NAMA.
Substantial bids
John Bruder, Managing Director of Treasury Holdings, commented:
Three substantial bids have been made for our loans over the past 18 months. These were from serious foreign investors and would have helped kickstart the Irish commercial property market and start the development of badly needed high end office accommodation. None has been accepted but we know that the bidders remain out there willing to engage. All have offered to buy the loans at a higher value than NAMA paid for them. Some also offer NAMA the potential of a stake in the future of the company to ensure they benefit from any future upside.
He continued:
We believe an independent third party mediator, of the Government’s choice and with experience of major property deals, should be appointed to negotiate in detail with foreign investors and secure the best possible deal for the taxpayer.
Transaction benefits
Treasury Holdings said that a transaction with a new investor of this scale could:
- Deliver a profit to NAMA on a large loan portfolio
- Deliver a potential €900m transaction in an otherwise illiquid market
- Establish market values for property in Ireland
- Facilitate FDI into the Irish property market by delivering one (or more) major overseas investors
- Signal to the international market that NAMA is open for business
- Facilitate Treasury’s management platform survival so that it can contribute to Ireland’s economic recovery
- Protect the jobs of the 300 people working for the Treasury Holdings Group in Ireland and the jobs of our key suppliers
It said the alternative was the the appointment of receivers, the selling of portfolios, or the placing of prime Irish properties “into passive investment funds”.
Treasury said they are confident they will win their judicial review proceedings against NAMA’s decision to appoint receivers.
Bruder said:
We are open to any alternative route involving mediation or third party negotiation in order to end this process quickly.
He said he agreed with the recent statement of the Chairman of NAMA Mr Frank Daly that he is “cautiously positive” about the property market.
Treasury Holdings published a lengthy account of the history of its dealings with NAMA today.
Property crash
In a joint statement the current shareholders of Treasury Holdings, Richard Barrett and John Ronan, said:
The property crash has brought a new reality to this company. One part of it is that if a deal is done to bring new investors into Treasury Holdings or to sell our loans, the company will then be controlled by others, and not by us. Any deal will have to be approved by NAMA.
What we will get out of any deal is the satisfaction of seeing this company and its unique collection of skills and expertise kept intact and continuing to provide the top quality office and other accommodation that Ireland, and potential foreign direct investors, need. We will also see the jobs of the 300 people who work for Treasury Holdings safeguarded and the company playing a role in Ireland’s economic recovery.
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