It is reported that the National Asset Management Agency has confirmed the sale of an €810 million portfolio of loans relating to property developer David Courtney to a joint venture entity, which will be 20% owned by NAMA and 80% owned by a consortium comprising US investment group Starwood Capital Group, Dublin-based Key Capital and UK-based Catalyst Capital. It is reported that the deal involves the consortium paying €195 million for the portfolio, representing a discount of almost 76%. It is also reported that NAMA will finance the joint venture. Nama’s retained ownership is a positive signal that the commercial property market here is on the turn. Called project Aspen, the portfolio reportedly comprises 30 commercial property loans that were extended by a mix of Irish banks during the property bubble, including Anglo Irish Bank, Bank of Ireland and AIB. The loans reportedly relate to both commercial and residential property in Dublin including 6 shopping centres, 12 office buildings, six industrial units and some residential and development sites.
It is reported that NAMA is still looking for buyers for another €230-330 million portfolio of Irish property-backed loans. The sale of this portfolio, called Project Club, is reportedly being handled by property advisers CBRE.
The assets of the Irish Bank Resolution Corporation (IBRC, (formerly Anglo Irish Bank)) will be offered for sale by the liquidators and in the event that a third party makes an offer that is at or above their valuation, the assets will be sold to the highest bidder. If no bid matches the independent valuation, the assets will be sold to NAMA at their valuation price. It is reported that among the big borrowings expected to be bought out during the sale before entering NAMA are performing loans of hundreds of millions of euro owed by high profile property investors. It is reported that IBRC has a loan book of circa €16 billion. It is reported that bids will be invited for four to six weeks, sometime in June 2013.
Other banks are also reportedly planning to step-up the disposal of their Irish loan portfolios in 2013 to meet demand from investors looking to invest in crisis-hit economies. Lloyds Banking Group is reportedly considering the sale of a €650 million portfolio of Irish real estate loans. Late last year Lloyds reportedly agreed to sell two portfolios at severely discounted prices – the €1.8 billion Project Lane portfolio to Apollo Global Management’s Resale Limited for approximately €184 million and the €380 million Project Pittsburgh, to CarVal Investors for €95 million.