US investment firm set to buy Shelbourne Hotel loans

Monday 13 January 2014 16.00
The Shelbourne Hotel has been in business since 1824
The Shelbourne Hotel has been in business since 1824

Investment firm Kennedy-Wilson Holdings is set to buy debts connected to Dublin’s Shelbourne Hotel from the Irish Bank Resolution Corporation, according to reports.

Sources said the IBRC would sell the loans to the California-based firm later this week, according to news outlet Bloomberg.

Last week the company said it was under contract to pay around $152 million (€111 million) for the “potential purchase” of loans secured against the hotel.

In 2004 Bank of Ireland and IBRC’s predecessor, Anglo Irish Bank, loaned more than €200 million ($273 million) to a group of developers to buy and refurbish the Shelbourne, CoStar Finance reported last month.

IBRC, Kennedy Wilson and Bank of Ireland all declined to comment on the reported deal when contacted by Bloomberg.