Nama in talks to sell Louis Vuitton store

STATE ASSETS agency Nama is said to be in talks to sell the high-profile Louis Vuitton store it controls in London to the French luxury goods group’s chief executive, Bernard Arnault.

Nama acquired the store, on Bond Street in the centre of the British capital’s shopping district, when it appointed receivers to a number of properties owned by developer David Daly, who owes the agency about €450 million.

Reports yesterday said that Louis Vuitton Moët Hennessy (LVMH), the French luxury goods giant, is in talks to buy the property, which houses its flagship London store, for €350 million.

The premises also houses US high-end leather goods merchant Coach.

The reports stated that France’s richest man, LVMH chief executive Bernard Arnault, is in talks with Nama to buy the stores.

London is still seen as a safe haven for property investment, while there is an increasing trend among retailers to buy, rather than lease, their stores.

The properties are located at 17 to 20 Bond Street.

David Daly bought them at various stages during the last decade and combined them as a single block.

He made the first purchase for £50 million in 2004 and two years later bought the remaining properties for a further £65 million.

Louis Vuitton opened its flagship store there last year and launched the outlet with a celebrity-studded party.

AIB provided part of the funds for the deal, and Nama subsequently took over the loans.

It appointed receivers to properties belonging to Mr Daly and his family earlier this year.

In a subsequent High Court action, the Dalys failed to get orders preventing the appointment of receiver Jim Hamilton to their Irish properties and Shay Bannon and Sarah Rayment over their British assets.

However, the court did give them leave to challenge Nama’s demand earlier this year for the immediate repayment of loans totalling €457 million to the agency.

Along with businessmen Joe Moran and Jim Flavin, Mr Daly was one of the founders of Manor Park Homes, which was itself placed in receivership in the autumn at the request of its directors.

He sold out of that business and used the profits to establish his own operation, Albany Homes, a successful residential building group focused mainly on Dublin and its hinterland. – (Additional reporting by Reuters)