Ulster Bank has made its first loan disposals as it prepares £9bn of real estate debt for sale.
The bank, which is part of RBS, sold a €67m (£55m) portfolio of loans secured predominantly on Irish residential real estate.
New Irish REIT Hibernia bought the loans in its debut acquisition since it raised €385m floating on the Dublin Stock Exchange in December.
Hibernia said that the total cost of the purchase would ?be around €70m and that ?it intended to spend an ?estimated €20m on development works, and to sell off “non-core” assets.
The 17-strong portfolio, which produces an annual rental income of €1.9m, is located mostly in Dublin.
The largest asset in the ?portfolio consists of 213 partially completed flats located at Wyckham Point, Dundrum, Dublin 16.
The assets form part of RBS Capital Resolution, the internal bad bank announced in November last year tasked with the accelerated run-down of €38bn of loans including €9bn from its Irish business.
Bridget.O’Connell@estatesgazette.com
