The PBN Property group has just published its accounts for 2009 and included an up-to-date commentary on the group’s standing. It confirms that some Bank of Ireland loans have transferred to NAMA. In addition the Belfast Telegraph claims “loans from Anglo Irish Bank and Allied Irish Bank are currently on a NAMA disposal schedule” – it’s not clear what this means but may mean NAMA is selling on loans that the agency has acquired that relate to the PBN Group. NAMA is forbidden by law from selling loans back to the borrower.
The company delivers a withering assessment on the current state of banking in the Republic, claiming (with very good reason it must be said) that the group had been assured that banks operating here were well capitalised (according to the former head of Ireland’s Financial Regulator body, Pat Neary in 2008, Irish banks were the best capitalised in Europe) only now to find that there is very little or no credit available and indeed banks here seem to be so distracted with dealing with the consequences of bad loans that the don’t have the time to review new business plans.
The PBN Group (controlled by Paddy Kearney, Brian McConville and former Anglo NI boss, Neil Adair) has a distinguished history of developing commercial property (eg Clarion Hotel in Carrickfergus, The Shore shopping centre in Carrickfergus and Carryduff Shopping Centre in Belfast) and residential property (eg The Demesne in Carryduff and Woodland Manor flats in South Belfast). NAMA expects to take on €4bn of loans that relate to Northern Irish property (and a further €1bn of loans advanced to Northern Irish borrowers secured on property outside Northern Ireland)
NAMA Wine Lake 
Just published? I posted this here weeks ago!
Indeed JP you did provide a very helpful commentary on the accounts on 27/11 which is probably worth reproducing here – today’s article in the Telegraph was newsworthy because it confirmed some of PBN’s loans have gone to NAMA and they’ve also torn a few strips out of the Republic’s banks.
“In Belfast downward pressure on rents is already being applied by government, which is frankly the only player that really matters in that market. Landlords are being offered the security of long leases in return for renegotiating rents downwards.
Also I’ve just been reading the latest accounts of PBN in which they are the first major nordie developer (other than McKillen/Drayne to talk openly about their relationship with Nama.
PBN has close connections to Anglo: One of the directors is Neil Adair who once ran the Anglo office in Belfast, another director is tax-exile Paddy Kearney who was one of the ‘Golden Circle.’
They look to be carrying about £200m of bank debt, the majority – if not all – owed to Nama PIs. They say they were told by phone call at the end of October that Nama had acquired their BoI loans but that at time-of-writing their loans with other PIs had not yet been transfered.
Reading between the lines they seem to be welcoming Nama as they say it’s been near impossible to have a sensible conversation with the banks, so chaotic have they become. They also like the sound of Nama’s 10yr lifespan and say they will be talking to Nama about refinancing and also ‘debt restructuring’ – which I take to be a euphemism for write offs.
PBN have plenty more to say about the banks. Firstly that they were forced to adopt a disastrous interest rate hedge just before the BoE started slashing rates in 2008 which cost them about £9m in 2009 alone.
Secondly that as a condition of continuing bank support they were told to get full PP for everything they could in order to increase the value of sites.
Thirdly they were told there would be no funding available to develop these sites if they did get them through planning. As a consequence they have mothballed all developments.
This focus on planning has not even been entirely successful as the Planning Appeals Commission recently rejected a 99 unit apartment development on a PBN site in Newtownabbey.”
I would like to know what is going to happen to Quinn’s debt with Anglo Irish? Quinn’s properties have not been moved into NAMA because it is an ”ongoing business” so will Anglo Irish continue with the loan or at some point try to get its money back?
I’m not sure if Sean Quinn’s loans will be eligible for NAMA. I am aware of investment properties owned or controlled by Sean, for example in Central/Eastern Europe (see link below) but I am not sure than any lending would fall into the “land and development” category which would make them NAMA eligible. I haven’t seen him associated with NAMA before – if you know differently can you please be careful with what you say on here and provide a link to a source. Remember that after NAMA has finished its transfers there will still be some €70bn of commercial property lending on the books of the five NAMA financial institutions. And from what I have seen there exists the possibility that these loans may be sold off at a discount or redeemed at a discount by the existing borrower, all in the name of the “deleveraging” which is a condition of the IMF/EU bailout.
http://www.independent.ie/business/irish-lead-a-second-eastern-front-1198904.html