Nama selling in London at <50% market price?

Nama appears to sell property in London at less than half the market rate…the question is why?

NAMA Wine Lake

Costar, the UK commercial property website this morning reports that NAMA has sold a residential/commercial development in east London to a joint venture between a UK company called Development Securities and a Canadian company, Realstar Group. The development is at Wick Lane in Hackney and is next door to the Olympic Park where 27th July this year, the next Olympic games will commence. The Royal Bank of Scotland funded the transaction; so no NAMA staple finance needed, and evidence that some UK banks are lending. The brief press release from Development Securities is here.

The development comprises 112 apartments which occupy 116,000 sq ft and in addition, there is a nice 12,000 sq ft of office/retail space. Excluding the commercial space, the purchase price works out at just over GBP 140,000 (€168,000) an apartment for what would appear to be decent-sized apartments – 116,000 sq ft less 25% for…

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