It’s all about relationships

When Allied Irish Banks Plc (“AIB”) completed the £875m financing for the acquisition in November of the Citi Tower in Canary Wharf for Glenn Maud’s Propinvest and Derek Quinlan, it sent two clear messages. Firstly that AIB is still ‘open for business’ and secondly, according to Michael Cooke, head of property finance, “that even in the most challenging market conditions, by adopting a focused relationship approach to our clients and understanding our clients’ objectives, it is still possible to arrange well-structured and appropriately-priced funding even for deals of significant size”.

AIB jointly arranged and underwrote the senior debt facility for this acquisition which closed on 30 November. This was one of the largest single-asset property transactions ever in the UK market.

“We worked very closely with our client at every stage in this complex transaction and, even with the growing credit crunch storm around us, remained convinced by the merits of this proposition” Mr Cooke said. “Equally pleasing therefore was that this conviction proved to be right when, even though AIB had agreed a significant hold level, we were still able to successfully syndicate this transaction within a five week period”.

AIB has a well established property finance business operating through its Capital Markets’ team in London. This team has developed a high level of industry knowledge and expertise, a strong and diverse customer base and a sound reputation in the market. The team prides itself on its relationship-based approach to business and a strong sense of teamwork. According to Donall O’Shea, head of UK real estate, “we recognise the importance of efficient, fast and accurate deal execution. This is clearly acknowledged by our clients and is reflected in the high level of repeat business that we transact”.

Commitment to customer service is the cornerstone of AIB’s success. Each client has a dedicated relationship manager who works to recognise a customer’s individual needs and to provide tailored solutions.

Mr O’Shea commented: “We recognise that the property finance landscape has changed significantly in recent months. The effective closure of the CMBS market and the fallout from the US sub-prime mortgage crisis has meant that the need for flexible, commercial and well structured property finance has increased markedly. We believe that our recent track record of deal completions proves that AIB is exceptionally well placed. We have a sound balance sheet, a strong relationship ethos and, like many of our customers, believe that, for the right terms, there are sound opportunities available for us”.

AIB has funded property deals across most sectors, and has been particularly active in office and retail acquisitions. The team offers a broad range of finance solutions from investment loans and senior debt facilities to treasury solutions such as hedging, swaps and other derivative products. Mr Cooke adds “we understand that the market is complex and challenging but, armed with our sector knowledge, remain committed to supporting our clients in their acquisition plans both in the UK and in Europe”.

AIB’s London based team can be contacted on the following numbers:
Donall O’Shea, Head of UK Real Estate, AIB Corporate Banking Britain
St Helen’s 1 Undershaft London EC3A 8AB Tel: +44 207 090 7107 Fax: +44 207 090 7971
email: Donall.A.O’Shea@aib.ie www.aibcorporate.com

Michael Cooke, Head of Property Finance, AIB Corporate Banking Britain
St Helen’s 1 Undershaft London EC3A 8AB Tel: +44 207 090 7108 Fax: +44 207 090 7971
email: Michael.J.Cooke@aib.ie www.aibcorporate.com

Allied Irish Banks Plc is authorised by the Irish Financial Regulator and regulated by the Financial Services Authority for the conduct of UK business.