Development Securities buys property loans

Property investment firm Development Securities said it had bought a portfolio of bank loans for 40 million pounds.

The loans are secured against 17 investment and development assets in London and the South East of England.

It consists of 76% commercial and 24% residential assets.

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The company said it had completed the acquisition "within its own resources" and expected to realise the repayment of the loans through the sale of their underlying property assets as rapidly as markets allowed.

The company said it anticipated that returns generated from the sale of the properties would be similar to those normally achieved within its current risk adjusted return parameters.

It gave no more detail, citing "contractual confidentiality and commercial sensitivities".