Banks Press Developers to Sell Land In UK Ahead of Nama

The state’s main banks have pressed developers to take advantage of an uplift in the UK property market to sell land and investment assets to recoup loans before they are sold to the National Asset Management Agency (Nama) over the coming months, The Irish Times reported. A number of developers have been encouraged to put land in the UK, including some prime sites in London, on the market as the banks believe they will receive a better deal than if they were to sell the loans at a discount to Nama. One high-profile property developer who expects to be among the second or third wave of top borrowers moving to Nama said he had been encouraged to sell a prime UK site in advance of the Nama loan transfers. “The banks are cherrypicking assets – they believe they can get a better price on the open market than from Nama,” he said. Both AIB and Bank of Ireland said there was no formal strategy being pursued where they were urging developers to sell land and investment assets to recover loans before Nama. Read more.