Anglo Irish Bank has begun moving on some of its €10bn in prize US assets as its management seeks to recover maximum value from its portfolio of
loans.

Earlier this month the nationalised lender started foreclosure proceedings on One Kendall Square, a prestigious lab, retail and office complex in Cambridge, Massachusetts, that Anglo backed with $180m (€131m) in 2006.

The local owners of the property, Beal and Rockwood Capital, told the Boston Globe last week that there were no legitimate issues with the mortgage. The 63,000 square metre complex, located about 1km from Harvard University, is 90% occupied.

It is understood Anglo is not facing a loss on the loan, but that the bank sought foreclosure because the borrower was not meeting the terms and conditions of the mortgage.

The borrower has initiated legal action to stop the 16 December foreclosure, claiming the bank is seeking to recoup money on performing loans since these will have the highest recovery values.

The bank, which is facing writedowns of up to €34bn, has a mandate to minimise losses for the taxpayer.

Anglo has more than €3bn in outstanding high-quality loans in the Boston area, including the Thomson Reuters headquarters and a portfolio of properties in the upmarket Newbury Street area.