Danske Bank planning sale of 600 Irish properties

Friday 07 February 2014 17.39
Danske Bank is looking to sell the 600 Irish homes in one batch
Danske Bank is looking to sell the 600 Irish homes in one batch

Danske Bank is planning to seek to find a buyer for about 600 residential properties around the country as Denmark’s biggest lender retreats from Ireland, according to a person familiar with the matter.

The Bloomberg financial news agency said the Copenhagen-based lender is looking to sell the homes in one batch, according to the source. The portfolio has not yet been completed. 

The original owners bought the properties as investments, or buy-to-let homes, before defaulting on their debts, the person said.

Danske's chief executive Officer Thomas Borgen is among CEOs of foreign banks seeking buyers for Irish properties after suffering losses during the country’s property crash.

Overseas investors including Kennedy-Wilson Holdings are buying up Irish property as they bet on a recovery in prices.

Danske is currently in the process of exiting retail and business banking in Ireland as well as winding down its property investments. 

Other foreign lenders to unwind businesses in Ireland include the UK’s Lloyds Banking Group Plc and Rabobank Group from the Netherlands. 

Kennedy-Wilson recently agreed to buy a Dublin housing development from Lloyds for more than €80m.