Asset Resolution Corporation, the new vehicle established to buy property loans from foreign owned banks, is believed to have commitments of about €3 billion from financial backers.

The company is targeting banks which are not covered by National Asset Management Agency.

Two big names in business have teamed up for this venture. Mark Duffy is the former chief executive of Bank of Scotland (Ireland), while Kevin Warren is one of Ireland's biggest property fund managers.

Their new company will buy property loan portfolios from foreign banks in Ireland at a discount. Those banks could include Ulster Bank, Bank of Scotland (Ireland), National Irish Bank and ACCBank.

It is believed that ARC's funds will come from institutional investors such as British pension funds. Some of the money will be borrowed and could be borrowed from the banks the new company will be buying loans from.

Those investors will want to want to see a 15% return on their money in over a seven to ten year period. The new company will seek to take over loans early next year.

Foreign owned banks operating here will not be covered by the NAMA legislation as they are in receipt of assistance from other governments.

'As NAMA is unable to provide a solution that includes the foreign banks based in Ireland, ARC has been established to fill this gap. This proposition has allowed us to attract a considerable level of support from the international investment community,' commented Mark Duffy.