Hotel Phoenicia MALTA FOR SALE?

Just received a call from a friend in the UK who heard a rumor that the Hotel Phoenicia in Malta, now under NAMA protection, is for sale. Paddy Kelly has been seen often there in the past few months, with visits also by various shareholders, including Luan Cuffe, Ray Byrne and P. Farrell
Anyone?

Hotel Phoenicia caught up in Ireland’s financial storm

Hotel Phoenicia operators Cuffe (Malta) Limited is in the process of refinancing its debt with beleaguered INBS Bank in Dublin, to an “alternative banking institution outside of Ireland.”

The news was revealed to MaltaToday by the operating company, that explained that these negotiations will be concluded by the end of the year.

The hotel property is owned by six Irish investors, who took over the hotel in 2007. Among the hotel’s directors is 65 year-old Paddy Kelly, Ireland’s most notorious developer, who is reported to owe Irish banks almost €1 billion.

WELL WELL WELL…

So Pearse Farrell (FGS Partnership) was involved ALL along. It was never too hard to understand why Ray Byne of the Wineport (Athlone) who runs the Ice House ( Owned by Pearse Farrell) had a nominal 1 share in the Holding Company CUFFE MALTA LTD, registered with the Malta Financial Services Association, who’s asset was the Hotel Phoenicia. Interesting as well watching the transfer of shares over the years to a company based in Rotterdam BV.

( NOW THE QUESTION IS, HOW COULD ONE OF THE BORROWERS, PEARSE FARRELL, BE ENGAGED BY NAMA, IF IN FACT HE WAS, TO LIQUIDATE THE VERY HOTEL IN WHICH HE HAD AN INTEREST? HOW DID NAMA NOT KNOW AT THE TIME OF HIRING FGS PARTNERSHIPS, THAT PEARSE FARRELL HAD AN INTEREST IN THE PROPERTY, UNLESS OF COURSE THAT INTEREST HAD NOT BEEN DISCLOSED OR TRANSPARENT AT THE TIME NAMA HAD ENGAGED PEARSE FARRELL and/or FGS PARTNERSHIPS TO LIQUIDATE A HOTEL IN WHICH HE HAD AN INTEREST?)

Ray Byrne (Owner of THE WINEPORT, in Athlone) has been the General Manager of the Hotel Phoenicia since almost the time of the aquisition by CUFFE MALTA LTD, and his salary has been rumoured to have been in excess of 180,000euros p.a. since 2007. According to sources at the Hotel Phoenicia, Ray Byrne seldom spent more than 3-4 days a month in Malta.

Alistair Tidy’s company did secure the contract to refurbish the Hotel Phoenicia at a cost of more than 2 Million euros.

At the time of the original purchase of this Hotel,shares stood at Luan Cuffe 25%, Pearse Farrell 25%, Heuston Hospitality 50% (Paddy Kelly, Alistair Tidy, Paddy Murphy, ex BOI) The CEO of Heuston at the time was Peter Stephenson.

timesofmalta.com/articles/vi … ing.179887

namawinelake.wordpress.com/2012/ … borrowers/

I’m sure there will be more to come…Comments welcome.

« 2012 on NAMA wine lake2012 in Pictures »

NAMAed loans on Malta’s Phoenicia Hotel sold to third party
December 31, 2012 by namawinelake

Veteran developer Paddy Kelly is back in the news this week, with damaging reports in the Sunday Business Post that NAMA has issued a tender to its panel of five – nine, according to the NAMA panel displayed on the NAMA website – providers of Credit Verification (Investigative) Services to examine Paddy’s statement of affairs and the affairs of his family including the more famous son, Simon. NAMA hasn’t commented on the report, which has an odd aura about it, and we must hope that NAMA has not descended to megaphone communication with its developers, using specific media.

Today, we report that loans underpinning a project in which Paddy Kelly was a lead investor, the Hotel Phoenicia in Malta – website screen grab above – have been sold by NAMA.

The loans on the hotel are understood to have a face value of €21m. The original consortium of investors in the hotel in 2007 was led by Paddy Kelly but is understood to have included Luan Cuffe, Pearse Farrell (of Farrell Grant Sparks fame – often appointed as receivers by NAMA) and Alastair Tidey (son of Don Tidey, famed for being the supermarket executive kidnapped by the IRA in 1983). NAMA acquired the loans from the Irish Nationwide Building Society. It is understood that the investors, or a subset of them, attempted to buy the loans from NAMA but NAMA would not entertain their offer, in part because of proscriptions under the NAMA Act – specifically the proscription on NAMA selling assets back to the original borrower where the borrower is in default.

So, NAMA engaged NAMA’s head of asset management, John Mulcahy’s old firm Jones Lang LaSalle in Dublin to sell the loans which are secured on the upmarket hotel in Malta. There was a public process managed by JLL in London with a fixed closing date and JLL were successful in selling the loans to Mark Shaw’s Scottish property group, Hazledene and the purchase price understood to be €19m. So, all straightforward so far, NAMA acquired €21m of loans secured on property and sold them on at a 10% discount to their face value, so the taxpayer makes a loss on the deal of €2m-odd.

Claims that Hazeldene has discussed the sale of the loans to any subset of the original consortium were firmly rejected this evening by Mark Shaw, the chief executive of Hazledene.

Neither NAMA, JLL nor Hazledene had any comment on the matter at original time of writing, but Hazeldene has now confirmed that it acquired the loans after an open public competition, but that it has not had any discussions whatsoever with any subset of the original consortium about the sale of the loans. (sure, sure)

namawinelake.wordpress.com/2012/ … borrowers/

…and so it is finally official…Pearse Farrell of FGS Partnerhips was a partner in the purchase of the Hotel Phoenicia in Malta(he kept that under wraps for quite sometime) , along with Paddy Kelly, Alistair Tidey, Luan Cuffe (Ciaran’s Brother) and Paddy Murphy (ex BOI).

So, if I understand this correctly, we had originally Pearse Farrell 25%, Luan Cuffe 25%, and Heuston Hospitality (Paddy Kelly, Alistair Tidey, Paddy Murphy ex BOI (formerly State side) and 1 other Irishman who lives in Suisse, at 50%.

At this point Peter Stephenson was the MD of Heuston Hospitality and became, General Manager of the Phoenica for just a while. It was not long after that Ray Byrne, owner of the ‘Wineport Lodge’ in Athlone, (who coincidentally manages Pearse Farrell’s other ‘Boutique Hôtel’ ‘The Ice House’ in Ballina), was chosen by Farrell to succeed Stephenson, much to Peter’s dismay…(That’s what you get when you’re not à shareholder…Byrne holds 1 Share)
Byrne’s Salary…a cool €180,000€ per annum…for less than 3-4 days a month on the Island of Malta since 2007…His salary in fact rose to €200,000 in the past couple of years, and he was one of only 2 Directors of CUFFE MALTA LIMITED, thé holding company for the Hôtel Phoenicia, with it’s address in Rotterdam of all places, according to the Malta Financial Services Association, (MFSA)

Now it seems that Hazeldene has purchased, from NAMA, the Hotel Phoenicia. It would truly, truly be à large coïncidence, that Hazeldene has previously purchased the former ‘Pragelato Resort’, from then owners, Heuston Hospitality, who at one time also owned à share of the Hôtel Phoenicia.
2 former assets of Heuston Hospitality purchased by HAZELDENE…and Mark Shaw, the Chief Exécutive of Hazeldene has never discussed privately with any of the former investors in the Hôtel Phoenicia ‘à deal’…

Connect the dots ladies and gentlemen…Who or what is the Common Denominator?

NAMAed loans on Malta’s Phoenicia Hotel sold to third party
December 31, 2012 by namawinelake
Veteran developer Paddy Kelly is back in the news this week, with damaging reports in the Sunday Business Post that NAMA has issued a tender to its panel of five – nine, according to the NAMA panel displayed on the NAMA website – providers of Credit Verification (Investigative) Services to examine Paddy’s statement of affairs and the affairs of his family including the more famous son, Simon. NAMA hasn’t commented on the report, which has an odd aura about it, and we must hope that NAMA has not descended to megaphone communication with its developers, using specific media.

Today, we report that loans underpinning a project in which Paddy Kelly was a lead investor, the Hotel Phoenicia in Malta – website screen grab above – have been sold by NAMA.

The loans on the hotel are understood to have a face value of €21m. The original consortium of investors in the hotel in 2007 was led by Paddy Kelly but is understood to have included Luan Cuffe, Pearse Farrell (of Farrell Grant Sparks fame – often appointed as receivers by NAMA) and Alastair Tidey (son of Don Tidey, famed for being the supermarket executive kidnapped by the IRA in 1983). NAMA acquired the loans from the Irish Nationwide Building Society. It is understood that the investors, or a subset of them, attempted to buy the loans from NAMA but NAMA would not entertain their offer, in part because of proscriptions under the NAMA Act – specifically the proscription on NAMA selling assets back to the original borrower where the borrower is in default.

So, NAMA engaged NAMA’s head of asset management, John Mulcahy’s old firm Jones Lang LaSalle in Dublin to sell the loans which are secured on the upmarket hotel in Malta. There was a public process managed by JLL in London with a fixed closing date and JLL were successful in selling the loans to Mark Shaw’s Scottish property group, Hazledene and the purchase price understood to be €19m. So, all straightforward so far, NAMA acquired €21m of loans secured on property and sold them on at a 10% discount to their face value, so the taxpayer makes a loss on the deal of €2m-odd.

Claims that Hazeldene has discussed the sale of the loans to any subset of the original consortium were firmly rejected this evening by Mark Shaw, the chief executive of Hazledene.

Neither NAMA, JLL nor Hazledene had any comment on the matter at original time of writing, but Hazeldene has now confirmed that it acquired the loans after an open public competition, but that it has not had any discussions whatsoever with any subset of the original consortium about the sale of the loans.

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Posted in Banks, Developers, Hotels, NAMA, Non-Irish property, Politics | 14 Comments
14 Responses
on December 31, 2012 at 3:32 pm | Replywho_shot_the_tiger
This is not the first NAMA deal that Edinburgh’s Hazledene Group has acquired. It also bought the Pragelato Village Resort, built for the 2006 Winter Olympics, in an deal worth more than £25m. The resort was also owned by Paddy Kelly and Alastair Tidey.

Pragelato consists of 205 individual chalets and extensive luxury facilities, and was built at a cost of more than £85m.

The resort sits high in the mountains 50 miles to the west of Turin and links directly with the Via Lattea skiing area.

As well as the chalets, it comprises a hotel with a cinema, a nearby 10-hole golf course and a spa complex which is the largest in northern Italy.

It was built in 2006 and construction was funded by Anglo Irish Bank. The Irish investors lost their equity when the original holding company was placed in receivership in 2008.

NAMA’s negotiating skills can at best be described as slapstick. The three stooges could do better. This is not the first time that NAMA has egg on its face relating to the underselling of loans and – although it is not the case here – the victim of shafting by its receivers and their mates.

Martin Shaw’s Hazeldene is in a nice position on the Phoenicia loan, having been favoured by NAMA. It now has borrowers that are willing to pay back the loan and are in funds to do so. Therefore, at the very least it will make a €2 million profit on the Irish taxpayer – thanks to NAMA’s incompetent sales process – merely by consenting to the borrowers repaying the loan. The hotel is trading well, has potential development land as part of the package and rumours are that the loan is performing. It is also notoriously difficult to appoint receivers in Malta. The borrowers have some compensation. At the very least, they will be able to trade their personal guarantees (and maybe even a bonus payment) if they decide to let Hazeldene keep the property.

In the end the losers are the taxpayers. The utter incompetence of NAMA is literally incomprehensible – even to me. The particular incompetence of NAMA’s negotiating skills is currently aggravated by the politically inspired malice that NAMA pursues against its borrowers. If the 10% deficit that NAMA suffered on the recovery of this loan – to the benefit of the vulture capitalists and to the detriment of the taxpayer – is replicated on a comprehensive scale (and there is already a build-up suggesting that it is), then there is little hope of the Agency ever reaching its ambitious recovery targets.

on December 31, 2012 at 6:02 pm | Replynamawinelake
@WSTT, the chief executive officer of Hazledene has been in touch, and his approach has been verified, and he states categorically that “we have not had any discussions about selling loans to original consortium, nor will we.” so the blogpost above has been modified to reflect this statement.

on December 31, 2012 at 5:46 pm | ReplyJohn Gallaher
Unless JLL was doing a freebie lets not forget the substantial fees,I was going to say earned but charged appears more appropriate,at least 2%?
Given that NAMA retained these highly renunerated and prestigous pros. who had the deal flipped on then,perhaps NAMA needs to reevaluate that relationship.
Can sort of understand the distaste among the “public” of NAMA developers buying back at a loss loans but paying par?

on December 31, 2012 at 6:03 pm | Replywho_shot_the_tiger
@JG, Hi John, my information suggests that the borrowers were and are prepared to pay par. NAMA sold to Hazeldene at 10% below par. Hazeldene has no option but to pass the property to the borrowers if they are prepared to pay the loan off. Cost to the taxpayer = €2 million (plus fees as you say). Profit to Hazeldene for accepting payment of loan from borrowers = €2 million

on December 31, 2012 at 6:10 pm | Replywho_shot_the_tiger
@NWL, While Hazeldene’s CEO might not have any intention of selling the loan, he cannot prevent it being repaid at par. It is my understanding that the borrowers intend to repay the loan and Hazeldene will end up with a €2 million profit that NAMA should be pocketing on behalf of the taxpayer.

If Hazeldene refuse payment then I imagine that the proverbial “wigs on the green” will follow – or whatever is the equivalent in the Maltese courts.

on December 31, 2012 at 6:16 pm | Replynamawinelake
@WSTT, of course there is generally no barrier to borrowers repaying their loan in full! Hazledene just wanted it stressed that there had been no discussions on its part to sell the loan, and also that there was an open competition for the loans presided over by JLL in London with a fixed closing date, so the price paid by Hazledene was the market value, no more or no less.

on December 31, 2012 at 6:21 pm | ReplyJohn Gallaher
@WSTT they will take the money and run…not familiar with Malta law but what judicial system except maybe Venezuela,would award the lender title if the borrower can pay back the loan in full.

on December 31, 2012 at 6:15 pm | ReplyJohn Gallaher
@WSTT,Hi WSTT greetings from sunny San Diego…70 clear blue sky…off to the ZOO today,no not Tresaury Building to meet NAMA!
With the emergence thankfully from BK of so many of the Irish developers,this is going to be an ongoing issue for NAMA.
Why would a hedge fund or private equity group NOT retain one the original principals to realize value…one of the most disappointing aspects of NAMA has been its failure to enter into any joint ventures or utilize the expertise of the likes of Paddy Kelly.
I’m sure the x HSBC chap is a font of knowledge on many topics…but Irish RE!
Expect next year some prominent developers to be back in the saddle recapitalized and earning,employing people and paying taxes…in the UK!
What’s NAMA to do…deed restrict the property so that it can never be sold to NAMA’d developers ….they need to get ahead of this issue.

on December 31, 2012 at 6:33 pm | Replywho_shot_the_tiger
@NWL, Ah, therein lies the rub, as the bard said…… What is “open competition”? Is it one where the borrower is excluded because it is proscribed by law?

That one will be challenged before too many more years pass – or when the taxpayers get tired of subsidising the carpetbaggers and passing on lottery sized profits to them.

on December 31, 2012 at 6:37 pm | Replynamawinelake
@WSTT, in property you would say that the market value was the price struck between willing buyer and willing seller, both in possession of perfect knowledge and you would exclude special purchasers. In this case, the market price was arrived at excluding one special purchaser, the original borrowers, and I think you’re right, Minister Noonan and NAMA will again be challenged on this in the New Year, there is a cost to proscribing sale of assets to borrowers in default, and that has come about for political and not economically rational reasons, and we should know the cost of the revenge against borrowers!

on December 31, 2012 at 7:49 pm | Replywho_shot_the_tiger
@NWL. Douglas Horton said of revenge -

“While seeking revenge, dig two graves – one for yourself.”

it seems an apt quotation in these circumstances.

on December 31, 2012 at 8:34 pm | Replywho_shot_the_tiger
The JLL / NAMA sales methodology as stated of “an open competition for the loans presided over by JLL in London with a fixed closing date” just confirms the naiveté of NAMA (its advisors should not be naive) when it comes to selling its loans. Not to have a second round or further discussions with the bidders after receiving offers does not guarantee open market value. It just excuses shutting everyone out and guarantees that the vendor has not received the best price that could be available following further negotiations.

Amateurs?… Sweethearts?… Or the opportunity for something more minacious?

on December 31, 2012 at 8:51 pm | ReplyJohn Gallaher
Bit sporty of NAMA…thought they never leaked or commented on individual clients …
“…providers of Credit Verification (Investigative) Services to examine Paddy’s statement of affairs and the affairs of his family including the more famous son, Simon.”
So basically they have doubts about the validity of the net worth statements …potentially damaging to future business prospects.May discourage future partners this type of on going investigation,NAMA should investigate how this info is making it into the public domain…unless its deliberate!

on December 31, 2012 at 9:45 pm | Replywho_shot_the_tiger
From checking with sources close to the Kellys, they were totally unaware of this action by NAMA. The news was obviously leaked, but begs the question “Why?”.

It also demonstrates NAMA’s complete failure at client / borrower relationships.

Thr public leak will have caused considerable damage to the possibility of Paddy engaging in any future activity or partnership that would enable him to repay his debts. The leak seems petulant, vindictive and self-defeating to me. It is certainly contrary to the spirit of NAMA’s responsibility as delivered in the Treasury certiorari judgment.

If it was me, I’d be reaching for my lawyer.p
Comments

WTF - that is some post - if this is true, we are going to need another bail out from the ECB to pay for all the Tribunals this will need (although if the end result is the same as with past Tribunals, it will be as worthwile as paying off unsecured bondholders at par)

Pearse Farrell, Luan Cuffe (Ciaran’s brother), Alistair Tidey, Patrick Wilson and Paddy Kelly are ALL still involved in the HOTEL PHOENICIA.
Hazeldene, as it would appear from the lack of financial filings with the Malta Financial Services Association records, were just the front men to acquire the asset from NAMA, as the share ownership has NOT changed according to sources inside the Hotel Phoenicia.
This MUST be investigated at some point or another! I have heard through he grapevine paw that there are many journalists chomping at the bit it get to the bottom of the skulduggery that has been going on, as Pearse Farrell of FGS Partnerships, who have and are currently acting for NAMA are clearly in a Conflict of Interest!
More to come…

Vinoverities , I like it .

COMMENTS CONVENIENTLY CLOSED.

So, NAMA engaged NAMA’s head of asset management, John Mulcahy’s old firm Jones Lang LaSalle in Dublin (very well aquainted to Pearse Farrell of FGS Partnerships and working for NAMA, to sell the loans which are secured on the upmarket hotel in Malta. There was a public process managed by JLL in London with a fixed closing date and JLL were successful in selling the loans to Mark Shaw’s Scottish property group, Hazledene and the purchase price understood to be €19m. So, all straightforward so far, NAMA acquired €21m of loans secured on property and sold them on at a 10% discount to their face value, so the taxpayer makes a loss on the deal of €2m-odd.

Claims that Hazeldene has discussed the sale of the loans to any subset of the original consortium were firmly rejected this evening by Mark Shaw, the chief executive of Hazledene.

Neither NAMA, JLL nor Hazledene had any comment on the matter at original time of writing, but Hazeldene has now confirmed that it acquired the loans after an open public competition, but that it has not had any discussions whatsoever with any subset of the original consortium about the sale of the loans.

COMMENTS ON THIS BLOG ARE CONVENIENTLY CLOSED

This is not the first NAMA deal that Edinburgh’s Hazledene Group has acquired. It also bought the Pragelato Village Resort, built for the 2006 Winter Olympics, in an deal worth more than £25m. **The resort was also owned by Paddy Kelly and Alastair Tidey.
**
Pragelato consists of 205 individual chalets and extensive luxury facilities, and was built at a cost of more than £85m.

The resort sits high in the mountains 50 miles to the west of Turin and links directly with the Via Lattea skiing area.

As well as the chalets, it comprises a hotel with a cinema, a nearby 10-hole golf course and a spa complex which is the largest in northern Italy.

It was built in 2006 and construction was funded by Anglo Irish Bank. The Irish investors lost their equity when the original holding company was placed in receivership in 2008.

NAMA’s negotiating skills can at best be described as slapstick. The three stooges could do better. This is not the first time that NAMA has egg on its face relating to the underselling of loans and – although it is not the case here – the victim of shafting by its receivers and their mates.

Martin Shaw’s Hazeldene is in a nice position on the Phoenicia loan, having been favoured by NAMA. It now has borrowers that are willing to pay back the loan and are in funds to do so. Therefore, at the very least it will make a €2 million profit on the Irish taxpayer – thanks to NAMA’s incompetent sales process – merely by consenting to the borrowers repaying the loan. The hotel is trading well, has potential development land as part of the package and rumours are that the loan is performing. It is also notoriously difficult to appoint receivers in Malta. The borrowers have some compensation. At the very least, they will be able to trade their personal guarantees (and maybe even a bonus payment) if they decide to let Hazeldene keep the property.

In the end the losers are the taxpayers. The utter incompetence of NAMA is literally incomprehensible – even to me. The particular incompetence of NAMA’s negotiating skills is currently aggravated by the politically inspired malice that NAMA pursues against its borrowers. If the 10% deficit that NAMA suffered on the recovery of this loan – to the benefit of the vulture capitalists and to the detriment of the taxpayer – is replicated on a comprehensive scale (and there is already a build-up suggesting that it is), then there is little hope of the Agency ever reaching its ambitious recovery targets.

on December 31, 2012 at 6:02 pmnamawinelake
@WSTT, the chief executive officer of Hazledene has been in touch, and his approach has been verified, and he states categorically that “we have not had any discussions about selling loans to original consortium, nor will we.” so the blogpost above has been modified to reflect this statement.

on December 31, 2012 at 5:46 pmJohn Gallaher
Unless JLL was doing a freebie lets not forget the substantial fees,I was going to say earned but charged appears more appropriate,at least 2%?
Given that NAMA retained these highly renunerated and prestigous pros. who had the deal flipped on then,perhaps NAMA needs to reevaluate that relationship.
Can sort of understand the distaste among the “public” of NAMA developers buying back at a loss loans but paying par?

on December 31, 2012 at 6:03 pmwho_shot_the_tiger
@JG, Hi John, my information suggests that the borrowers were and are prepared to pay par. NAMA sold to Hazeldene at 10% below par. Hazeldene has no option but to pass the property to the borrowers if they are prepared to pay the loan off. Cost to the taxpayer = €2 million (plus fees as you say). Profit to Hazeldene for accepting payment of loan from borrowers = €2 million

on December 31, 2012 at 6:10 pmwho_shot_the_tiger
@NWL, While Hazeldene’s CEO might not have any intention of selling the loan, he cannot prevent it being repaid at par. It is my understanding that the borrowers intend to repay the loan and Hazeldene will end up with a €2 million profit that NAMA should be pocketing on behalf of the taxpayer.

If Hazeldene refuse payment then I imagine that the proverbial “wigs on the green” will follow – or whatever is the equivalent in the Maltese courts.

on December 31, 2012 at 6:16 pmnamawinelake
@WSTT, of course there is generally no barrier to borrowers repaying their loan in full! Hazledene just wanted it stressed that there had been no discussions on its part to sell the loan, and also that there was an open competition for the loans presided over by JLL in London with a fixed closing date, so the price paid by Hazledene was the market value, no more or no less.

on December 31, 2012 at 6:21 pmJohn Gallaher
@WSTT they will take the money and run…not familiar with Malta law but what judicial system except maybe Venezuela,would award the lender title if the borrower can pay back the loan in full.

on December 31, 2012 at 6:15 pmJohn Gallaher
@WSTT,Hi WSTT greetings from sunny San Diego…70 clear blue sky…off to the ZOO today,no not Tresaury Building to meet NAMA!
With the emergence thankfully from BK of so many of the Irish developers,this is going to be an ongoing issue for NAMA.
Why would a hedge fund or private equity group NOT retain one the original principals to realize value…one of the most disappointing aspects of NAMA has been its failure to enter into any joint ventures or utilize the expertise of the likes of Paddy Kelly.
I’m sure the x HSBC chap is a font of knowledge on many topics…but Irish RE!
Expect next year some prominent developers to be back in the saddle recapitalized and earning,employing people and paying taxes…in the UK!
What’s NAMA to do…deed restrict the property so that it can never be sold to NAMA’d developers ….they need to get ahead of this issue.

on December 31, 2012 at 6:33 pmwho_shot_the_tiger
@NWL, Ah, therein lies the rub, as the bard said…… What is “open competition”? Is it one where the borrower is excluded because it is proscribed by law?

That one will be challenged before too many more years pass – or when the taxpayers get tired of subsidising the carpetbaggers and passing on lottery sized profits to them.

on December 31, 2012 at 6:37 pmnamawinelake
@WSTT, in property you would say that the market value was the price struck between willing buyer and willing seller, both in possession of perfect knowledge and you would exclude special purchasers. In this case, the market price was arrived at excluding one special purchaser, the original borrowers, and I think you’re right, Minister Noonan and NAMA will again be challenged on this in the New Year, there is a cost to proscribing sale of assets to borrowers in default, and that has come about for political and not economically rational reasons, and we should know the cost of the revenge against borrowers!

on December 31, 2012 at 7:49 pmwho_shot_the_tiger
@NWL. Douglas Horton said of revenge -

“While seeking revenge, dig two graves – one for yourself.”

it seems an apt quotation in these circumstances.

on December 31, 2012 at 8:34 pmwho_shot_the_tiger
The JLL / NAMA sales methodology as stated of “an open competition for the loans presided over by JLL in London with a fixed closing date” just confirms the naiveté of NAMA (its advisors should not be naive) when it comes to selling its loans. Not to have a second round or further discussions with the bidders after receiving offers does not guarantee open market value. It just excuses shutting everyone out and guarantees that the vendor has not received the best price that could be available following further negotiations.

Amateurs?… Sweethearts?… Or the opportunity for something more minacious?

on December 31, 2012 at 8:51 pmJohn Gallaher
Bit sporty of NAMA…thought they never leaked or commented on individual clients …
“…providers of Credit Verification (Investigative) Services to examine Paddy’s statement of affairs and the affairs of his family including the more famous son, Simon.”
So basically they have doubts about the validity of the net worth statements …potentially damaging to future business prospects.May discourage future partners this type of on going investigation,NAMA should investigate how this info is making it into the public domain…unless its deliberate!

on December 31, 2012 at 9:45 pmwho_shot_the_tiger
From checking with sources close to the Kellys, they were totally unaware of this action by NAMA. The news was obviously leaked, but begs the question “Why?”.

It also demonstrates NAMA’s complete failure at client / borrower relationships.

Thr public leak will have caused considerable damage to the possibility of Paddy engaging in any future activity or partnership that would enable him to repay his debts. The leak seems petulant, vindictive and self-defeating to me. It is certainly contrary to the spirit of NAMA’s responsibility as delivered in the Treasury certiorari judgment.

If it was me, I’d be reaching for my lawyer.

Comments are closed.

:open_mouth:

Wow! You think you’ve seen the worst of it and are scrabbling around somewhere near the bottom of the barrel of filth, corruption and incompetence and then week after week this kind of crap comes out (thanks to the great work of the likes of NWL) and you start to realise that it wasn’t the bottom, it’s just another crud-encrusted tilted ledge on an infinite, bottomless barrel of shit XX

For those following the antics of NAMA and their Conflict of Interest with the various players, one will find the article below, a continuation of this thread which WILL be exposed for what it really is…Now why would Hazeldene, (Who deny any contact with the previous owners, who still are the owners:), want to walk away?

maltatoday.com.mt/en/busines … e-20130816

Phoenicia Hotel owner waits for Dutch court over loans’ debacle Property group that purchased loans securing hotel purchase from Irish government asset company, wants to walk away from €19 million deal.
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**
The Phoenicia Hotel**

A verdict from a court in Amsterdam is expected within weeks, on the property group that purchased loans securing the five-star Phoenicia Hotel in Floriana, can walk away from the deal.

Irish billionaire Paddy Kelly bought the hotel in a consortium with five other investors, but Scottish property group Hazledene wants to walk away from the deal.

The €21 million loan secured on the hotel was originally publicly sold by government-owned NAMA - Ireland’s National Asset Management Agency, which was created in 2009 in response to the Irish financial crisis and the deflation of the property bubble - to Hazledene, a property company owned by Scottish developer Mark Shaw.

It recently offered to release the consortium from their personal guarantees, if they handed up the hotel and walked away, the Irish Times reported, but Kelly was the sole dissenter among the group and has asked a Netherlands court, where the consortium was incorporated, to rule on whether the deal can be accepted without his permission.

“I love the place. I come to Malta about six times a year. Costs are much lower than back in Ireland, and a G&T is only €2.50,” Kelly has said.

He also said he understands why the other investors want to walk away: “It’s a frightening experience [being involved with NAMA]. I understand why people don’t want to become entrenched in the whole thing. But I want to stay involved. There is no harm in asking.”

In December 2012, loans underpinning the purchase of the Phoenicia Hotel, were sold by NAMA.

The original consortium of investors in the hotel in 2007 was led by Paddy Kelly but is understood to have included Luan Cuffe, Pearse Farrell and Alastair Tidey. NAMA acquired the loans from the Irish Nationwide Building Society.

A part of the consortium later attempted to buy the loans from NAMA, but the agency sell assets back to the original borrowers where the borrower is in default.

NAMA decided to sell the loans secured on the hotel in a public process to the Scottish property group Hazledene for €19 million, a 10% on the original €21 million - leaving taxpayers €2 million short on the deal.

Farrell , Cuffe, Kelly…Any answers for your fans?

Kelly digs in at the Phoenicia

**THE IRISH TIMES

Alastair Tidey
Don Tidey
Farrell Pearse
Cuffe Luan
National Asset Management Agency
**
Fri, Aug 16, 2013, 01:00

The globe-trotting developer Paddy Kelly, who owes taxpayers about €1.5 billion through Nama, was recently in court in Amsterdam in a row involving his Irish co-investors in a luxury hotel in Malta. Will he never find peace?

During the boom, Kelly bought the five-star Hotel Phoenicia in Valetta in a consortium with five other investors. It included Pearse Farrell, the uber accountant who co-owns Joe Duffy Motors, and Alastair Tidey, son of the former supermarket supremo Don Tidey who was once kidnapped by the IRA.

About €21 million of loans secured on the hotel were sold by Nama to Hazledene, a property company owned by Scottish developer Mark Shaw. It recently offered to release the consortium from their personal guarantees, if they handed up the hotel and walked away.
Kelly, who has grown quite fond of the place, was the sole dissenter among the group. He has asked a court in Holland, where the consortium was incorporated, to rule on whether the deal can be accepted without his permission. A verdict is due within weeks.

The Phoenicia is an impressive pile. Built near the gates of the city by Malta’s colonial prime minister, it was used as an officers’ mess during the second World War. Kelly appears to be digging in for a battle.

“I love the place. I come to Malta about six times a year. Costs are much lower than back in Ireland, and a G&T is only €2.50,” he said, seemingly oblivious to the rage this might provoke in his burnt creditors, The Public.

He said he understands why the other investors want to walk away: “It’s a frightening experience [being involved with Nama]. I understand why people don’t want to become entrenched in the whole thing. But I want to stay involved. There is no harm in asking.”
Well, that all depends on the question.

makes me :sick:
good post vinoveritas.
good to see the PIN take up the running from the sadly departed NAMAWINELAKE :smiley: