Deutsche Bank Said to Agree to Buy $537 Million of Irish Assets

Jul 25, 2014 12:34 pm ET

July 25 (Bloomberg) -- Deutsche Bank AG agreed to buy real estate loans with a face value of more than 400 million euros ($537 million) from Ireland’s bad bank, three people with knowledge of the matter said.

The National Asset Management Agency in Dublin is selling the portfolio linked to real estate owned by Irish developer Gerry Conlan at a discount, said the people, who asked not to be identified because the matter is private. Nick Bone, a spokesman for Deutsche Bank in London, declined to comment. Ray Gordon, a spokesman for NAMA, didn’t respond to requests for comment. Conlan also didn’t respond.

NAMA is taking advantage of renewed interest in Irish assets following western Europe’s worst property crash ever to accelerate disposals of property loans. The asset manager expects to repay 80 percent of its 24 billion euros of senior bonds by the end of 2016 after setting an initial target of repaying all of the debt by 2020.

Quarterly returns from Irish commercial real estate accelerated to 8.5 percent in the three months through June, the highest in eight years, Investment Property Databank Ltd. said on July 22. Returns were 7.2 percent in the first quarter, the London-based researcher said.

NAMA was set up in 2009 by the government to take over 74 billion euros of risky commercial real estate loans held by Ireland’s banks and sell them over as many as 10 years.