American investment company, Kennedy Wilson, is close to taking over the loans secured against the Shelbourne Hotel, Dublin, as the influx of overseas money into the commercial property sector continues.
According to the Irish Independent, the investment firm will be buying Bank of Ireland's loans that were used to fund the purchase of the Shelbourne by a few property developers including Jerry O'Reilly and Bernard McNamara, who bought and renovated the hotel in 2004.
Bank of Ireland and Anglo Irish Bank financed the agreement for €103 million each. However, the deal collapsed along with the property boom.
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In 2009 the loans expired. Lenders have been able to request the loans at any time since then. The potential terms of the deal have not been disclosed. However,the off-market transaction has given Kennedy Wilson control of half of the Shelbourne.
It is now expected that Kennedy Wilson will also purchase the Anglo portion of the loans.