THE NATIONAL Asset Management Agency imposed no haircut on AIB’s loan on the Montevetro building in Dublin as the loan was provided after the Government announced plans for the agency.
AIB lent about €30 million to the developer of the building, Real Estate Opportunities, in which Treasury Holdings is a major shareholder, after April 2009 when Nama was unveiled.
No discounts were imposed on development loans provided after April 2009 following an agreement between the banks and Central Bank governor John Hurley.
The purpose of the agreement was to prevent the banks from ceasing all development lending amid fears that Nama would apply losses on new loans to developers.
Nama’s payment of the face value on the AIB loan substantially reduced the profit that it made on the sale of the office building.
The property was purchased last month by internet company Google for €99.9 million, but Nama refused to disclose the profit on the deal, saying only that it recovered more than the original loan and a development loan provided to complete the building.
The profit made by Nama is estimated to be less than €10 million, according to sources familiar with the finances behind the property.
This was after the €30 million payment to AIB, development finance of about €40 million and a payment of €21 million to CIÉ, the owner of the Montevetro land.
Nama and AIB declined to comment on the transaction.
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