Nama sells Gannon’s London portfolio for €120m

British property investment firm Development Securities has formally announced its intention to acquire assets from Nama believed to be developer Gerry Gannon’s property portfolio in Britain.

Nama is selling the £100m (€120m) Chrome Portfolio of residential/retail properties through Savills.

Development Securities’ announcement follows a report in Property Week that it had, along with William Pears Investments, jointly purchased the portfolio.

The company said: “Development Securities confirms that it is in discussions with Nama regarding the potential acquisition of a number of different assets. However, it is not in a position to comment on these discussions at this juncture.”

The 38-property bundle includes a number of sites in secondary locations, but also residential blocks in London’s Victoria, Covent Garden and Chelsea districts with the holding generating £6.4m per annum.

Property Week suggested a yield of 3%-4% on the general portfolio but 8-9% on the residential properties.

Despite breaking cover to announce its intention, Development Securities is not alone in negotiations for the Nama-held properties — there are other serious contenders, according to property sources.

A spokesperson for Nama would make no comment on the sale.

Meanwhile, reports suggesting Michael Smurfit had purchased a 49% stake in the K Club for €10m appear to have been premature.

While Mr Smurfit had previously confirmed his intention to purchase Gerry Gannon’s half share, the sale has not been confirmed by Nama, who again had no comment to make.

However, industry sources say Mr Gannon’s share should realise much more than the €10m quoted — the stake was valued at €60m in 2010.

Mr Gannon and Mr Smurfit jointly purchased the K Club from Smurfit’s former firm, Jefferson Smurfit, in 2005, for €115m and the company which runs the K Club, Bishopscourt investments, has debts of €55m owed to Nama.

Buying the stake is critical for Mr Smurfit, who was expected to pay over the odds for the half share in order to stave off receivership at the club.

A spokesperson for Nama would make no comment.

More in this section

Lunchtime
News Wrap

A lunchtime summary of content highlights on the Irish Examiner website. Delivered at 1pm each day.

Sign up
Revoiced
Newsletter

Our Covid-free newsletter brings together some of the best bits from irishexaminer.com, as chosen by our editor, direct to your inbox every Monday.

Sign up