Arcadia loans at risk

Loans to property developer Glenkerrin UK advanced for the purchase of properties on the Arcadia site may be at risk, as the Anglo Irish Bank (AIB), which holds mortgages on a large part of Glenekerrin's holdings in Ealing, starts to wind down its lending portfolio.

This follows the decision this week by the Irish government to split AIB in two parts, after the bank's enormous losses due to collapse of the property market. The first part will be restricted to guaranteeing deposits, while the state will take over and run down the property loans through the Irish National Asset Management Agency (NAMA).

The head of NAMA has announced that it will have reviewed, valued and acquired 81 billion euros (67bn) worth of problem loans by February. Several have already been taken over at valuations written down by an average of 50%.

NAMA has also said that it will pursue any individual who did not co-operate in the transfer of the loans, if necessary by actions such as taking control of businesses and assets through the appointment of receivers. Ray Grehan, Glenkerrin's Irish chief, is thought to have given guarantees on the interest due to AIB on a number of loans.

It is believed that Glenkerrin UK has mortgages with AIB for properties on the Arcadia site which exceed 20 million.

SEC has seen no comment yet from either Glenkerrin or Ealing Council on how this might affect the future the redevelopment of the centre of Ealing.

10 Sept 2010