'BAD BANK' TO SELL OFF PROPERTY; Dublin move not good for North warns expert.

Byline: COLM DONNELLY 

SPECULATION is mounting that the newly-created Nama "bad bank" in the Republic may begin selling off property it holds in Northern Ireland.

Southern Irish investors were encouraged to look north as the property price boom seemed to spell the opportunity for quick profits.

However, when the market collapsed many of the speculators found themselves unable to sell their developments, or to meet repayments to their banks.

Then the Irish Government stepped in to set up Nama - the National Assets Management Agency - and those bad debts will be transferred to the new "bad debt bank". Some EUR77billion [pounds 70billion] of so-called toxic property borrowings could be bought by Nama for just EUR54billion [pounds 50billion].

The bulk of the loans were for land and properties in the Republic but 6% were in Northern Ireland.

Now sources in the estate agency sector are saying that Nama will act to sell off as much of the property it holds in the North as possible.

PRICES One prominent Belfast estate agent yesterday said this may not be a positive development for what he described as the "fragile" northern property market.

The businessman added: "It would be better for us if Nama held on to the property at least in the medium term.

"A lot of property coming up for sale now may force down the price of existing properties in Northern hands and they may not realise what they potentially could have when they are sold in one or two years' time."

pounds 70bn Republic's assets agency Nama bought the loans to help restore economy 6% amount of the loans to buy land and property across Northern Ireland pounds 20bn difference between the original value of loans and price Nama paid for them