An interesting read in the Irish Times about a couple that went on a borrowing spree to acquire over €1bn worth of property. They’re now being sued by everyone from Morgan Stanley, to Bank of Ireland, to Aareal.
The couple also owe €97.7 million to AIB on an office block at 2099 Pennsylvania Avenue near the White House in Washington DC. They value the office building at €138.4 million.
A further €96.6 million in borrowings is listed but the statement does not identify the lenders.
The statement, dated July 31st, 2010, shows that the O’Donnells have net property assets of €110.5 million after loans and the associates’ interests in the properties.
Their most valuable property is the Fatburen building, the largest office block in Stockholm, which was worth €278 million, according to the couple’s statement.
Aareal Bank’s €235 million loan is secured on the building. The bank refinanced the loan on “draconian terms”, Mr O’Donnell told Bank of Ireland in a letter dated September 17th, 2010.
Mix a helping of leverage with a dash of chutzpah, stir in some financial crisis…it’s a perfect recipe for disaster. Read the whole thing here. Send us your interesting reads as well, by the way, if you care to share.