AIB THREAT TO 60 CENT DEBT CUSTOMER - A leading bank threatened to close a customer's account after they were overdrawn by just 60 cent and missed one loan repayment, writes the Irish Independent today. AIB was accused of being "heavy-handed" after it also threatened to put a black mark on the customer's credit record and dip into their savings. The bank, which has received €20 billion in taxpayer funds, also threatened to withdraw the consumer's debit card after the account holder missed one €94 repayment on a loan. Consumer watchdogs said banks were now treating anyone who gets into arrears in an aggressive fashion. The bank insists that letters of this nature would only be sent after a series of earlier contacts with the customer. However, in this case the customer insists that there were no previous letters or phone calls. The customer said that just one missed repayment and an overdraft of 60 cent should not have prompted this type of letter. The customer, who is known to this newspaper, is of 30 years standing with AIB and missed the payment while in hospital with a heart condition. This led to his current account ending up with an unauthorised overdrawn amount of 60 cent, prompting AIB to write to him to terminate his bank accounts and overdraft facility within 30 days. The bank also said it would cancel his combined ATM and debit card.
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IRISH DATA FIRM IN SALE TALKS WITH TELECITY - Irish data centre provider Data Electronics is believed to be in early-stage talks about selling the business to UK-based rival Telecity Group in a deal expected to be worth £100 million, says the Irish Times. Telecity is one of the biggest players in Europe in this sector, and is looking to expand as the popularity of "cloud" computing grows and more companies are interested in using capacity at its data centres. Revenues at Telecity rose 16% last year. Telecity, whose customers include Walkers crisps, Facebook and Transport for London, is building three new data centres in London, but it is also looking at European targets. The company has a credit facility of £300 million earmarked for expansion. "We have seen large companies, such as financial institutions, move from owning their own data centres to leasing space from data centre companies," said James Dodsworth, partner at Mayer Brown, the law firm which advises companies on data centre deals. Data Electronics is one of Ireland's largest providers of data centre services. It was founded in 1975 and has invested heavily in its two data centres near Dublin. It has recently completed a €15 million expansion of an eco-friendly data centre in north Dublin, which followed an initial €25 million investment in 2008.
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ROSS EYES MORE IRISH INVESTMENT - US billionaire investor Wilbur Ross has said he will look at other Irish-based investment opportunities, after his company took a near-10% stake in Bank of Ireland, says the Irish Examiner. Mr Ross' New York-based investment firm WL Ross & Co took a 9.9% stake in Bank of Ireland in return for its €300 million part of a combined €1.12 billion investment in the bank by a small number of private investors last week - a move that lowers the Government's stake to 15.1% and makes BoI the only Irish bank not to be state controlled. As well as WL Ross, international investment firms Fairfax Financial Holdings, Fidelity Investments and The Capital Group, along with property company Kennedy Wilson (which recently acquired BoI's property management arm) invested. Mr Ross, who earlier this year missed out on buying the EBS Building Society - which has since been subsumed by AIB - said over the weekend that Ireland's efforts to rebuild its economy are finding a favourable reaction from overseas investors. He said that the Government's claim that it is ahead of target in bringing the budget deficit under control was a key ingredient in his decision to take a stake in the bank.
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SUPER RICH TO GET NEW LONDON ADDRESS - A leading European hedge fund is preparing to build one of London's most expensive housing developments as global investors scramble to gain a foothold in the capital's resurgent residential market, says the Financial Times. In a deal completed over the weekend, Orion Capital Managers acquired an acre of prime residential land in Chelsea. The fund plans to build a £300m ($493m) housing complex which, it hopes, will vie with One Hyde Park for the title of the capital's priciest address. The deal comes at a time when property companies, institutional investors and wealthy individuals are battling to cash in on the demand for London housing. Fuelled by interest from foreign buyers, house prices in London have returned to, and, in some cases, surpassed, pre-financial crisis peaks. Average rents in the capital broke the £1,000 a month barrier for the first time in June. "Residential in London is trading like gold at the moment," said Aref Lahham, a director at Orion. "If you are a billionaire and you want a safe place to put some of your cash, London real estate is a bolthole. People want to live in London. You have legal rights, human rights and you are between timezones," Mr Lahham added. Orion, which is also building a 30-storey housing development on the edge of the City, paid £85m for the Chelsea site.
