STUD FARMS PLAN FOR NAMA HOTELS? - NAMA has been busy in recent weeks, keen to send out the message that it is ready to take action against delinquent property developers and that it is open for business when it comes to disposing of some of the buildings on its books.
This morning we read that it may soon be in a position to get rid of some high-end hotels to sovereign wealth funds in the Middle East. The Financial Times reports that the funds are considering using the hotels - not as hotels, but as grounds for stud farms.
Journalist Neil Callanan says Middle East funds are particularly interested in hotels with large grounds. NAMA will not comment, but Mr Callanan says a hotel with around 200 acres of land could go for between €2m and €5m. He says this shows there are buyers for everything at the right price.
Mr Callanan also says NAMA is concerned about the impact of a proposed abolition of upward-only rent reviews on the property market. It believes this could hit the value of its Irish investment portfolio by 20-25%, leading to a loss in value of €1.8 billion to €2.25 billion.
He says NAMA is anxious for clarity on the issue as no-one will buy while this debate is going on.
***
TOUGH TWO WEEKS AHEAD FOR EURO ZONE - It is likely to be a difficult two weeks for the euro zone, according to UniCredit Bank in Milan.
The bank notes this morning that €36 billion in European government debt will go to market over the next fortnight - while €69 billion is due to investors in the form of debt redemptions and coupon payments from France, Spain and Italy.
This will all take place against a backdrop of continued speculation that Greece will restructure its debt over the coming months.
Yields on Greek debt are at record levels, while credit default swaps indicate that investors believe the probability of restructuring remains high.
