Bloomberg News

Prudential Said to Agree to Buy Dublin Office Block From NAMA

December 09, 2011

Dec. 5 (Bloomberg) -- A Prudential Plc affiliate agreed to purchase a Dublin office block in the first sale that Ireland’s National Asset Management Agency has offered to help finance, a person with knowledge of the matter said.

The buyer beat five other bidders for One Warrington Place, which was put on sale for about 27 million euros ($36 million), said the person, who declined to be identified because the information is private. NAMA is willing to supply as much as 70 percent of so-called vendor debt financing to help sell the property. The person didn’t say whether the buyer asked for the financial assistance.

NAMA was set up to purge Ireland’s banks of 74.2 billion euros of risky commercial real-estate loans, for which it paid 31.7 billion euros. To generate real estate deals the Irish government announced this week that it would cut fees known as the stamp duty on commercial property to 2 percent from 6 percent and give an exemption on capital gains tax on commercial properties bought between now and the end of 2013 provided they are held for seven years.

The value of Irish investment property fell 4.6 percent in the three months to the end of September, real estate adviser CBRE Group Inc. said on Oct. 31. Investment property values have fallen almost 65 percent from the peak, it said.

NAMA Chief Executive Officer Brendan McDonagh said in October that the property drew about 30 expressions of interest.

Paul Griffin, a spokesman for Prudential, and NAMA spokesman David Clerkin declined to comment.

--Editors: Jeff St.Onge, Ross Larsen.

To contact the reporters on this story: Joe Brennan in Dublin at jbrennan29@bloomberg.net; Neil Callanan in London at ncallanan@bloomberg.net.

To contact the editor responsible for this story: Ross Larsen at rlarsen2@bloomberg.net.


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