JAN KVARNSTRÖM’S UK-based firm, which specialises in devising bad bank solutions, has set up a joint venture with Asset Resolution Corporation, the firm established by former Bank of Scotland (Ireland) chief executive Mark Duffy.
Mr Kvarnström said that European Resolution Capital (ERC) had a “strategic alliance” to co-operate with ARC, which was set up last year by Mr Duffy and property fund manager Kevin Warren.
They established ARC to purchase distressed property assets from the foreign banks in Ireland, which are not participating in the Government’s “bad bank” scheme, the National Asset Management Agency (Nama).
Mr Kvarnström said that the sovereign debt crisis had delayed ERC from making an Irish investment.
“Ireland has a lot of potential like many markets. In Ireland – like in Germany – it happens very slowly. But if you look at the degree of property, there is a lot of opportunity to restructure and make value from assets,” he said.
“Sooner or later there will be a lot of momentum and there will be opportunity for investment for Ireland. You should always buy on the way up, you shouldn’t buy at the bottom and sell at the bottom.”
The joint venture arrangement between ARC and ERC may lead to Mr Kvarnström’s company taking a substantial minority shareholding in the Irish company, according to sources close to ARC.
The Dublin firm held a series of meetings with foreign banks last year but has yet to announce a deal to buy any distressed assets.
Mr Kvarnström said he met Government officials last year to advise them on setting up Nama.
