Anglo sells $147m loan for 50% discount

STATE-OWNED Anglo Irish Bank has sold a $147 million (€108 million) development loan for a high-end New York property for a near 50 per cent discount, according to reports yesterday.

The Irish bank was owed $147 million by New York developer Zamir Equities, for the redevelopment of a 34- storey office block in the centre of New York’s financial district as a Setai Spa and condominium.

According to the Wall Street Journal, the Irish bank sold the loan to another developer, Ziel Feldman, head of HFZ Capital Group, for $80 million this week.

The bank had been looking to get out of the Setai development for some time, as the project has been dogged by delays and legal problems.

While a number of the condominiums were sold, the New York attorney general’s office halted the completion of further sales after there were problems with construction delays and other issues.

The Setai company itself, which operates hotels and health clubs, also took the developer to court claiming that parts of the development were not up to the standard that it requires.

The building is located on Exchange Place, just around the corner from the New York Stock Exchange and within minutes of Wall Street. It was converted from an office block to a spa, health club and condominium complex.

Anglo has been looking to get out of development loans in New York, and last year sold the loans it held over two Manhattan Hotels, the Alex and the Flatotel.

It has been reportedly seeking a buyer for a development loan for the Alex.

Developers Izak Senbahar and Simon Elias own all three Manhattan hotels.

Last month, they began court action for breach of contract against Anglo for $1 billion. It is understood that the bank intends defending the case.