Arsenal Turn Down £50m Deal
The unnamed Singaporean property developer has committed to the purchase of more than 100 flats at the site of the club’s old stadium for a total of £50m or just under 40% of the total loan of £135M. The property developer has already put down a non-refundable deposit of 10%. Furthermore, he has made clear to Arsenal that he is willing to make a further large down payment on the balance of his investment. He is not however, prepared to pay the £45m up-front..
The consortium of banks involved in the Highbury Square loan is, RBS and the Bank of Ireland. The Irish bank objected to the proposed deal forcing the club to reject the proposals. It is understood that the “substantial” down payment and initial deposit would have been in the region of £30m.
It is absolutely crazy for the banks to object to this deal. This would have enabled the club to repay £30m of the £135m loan, instead we are left with 100 flats unsold and the banks have no money. Where is the logic in that?