IBRC Loan Book

It is reported that the sale of the circa €22.2 billion loan book of the Irish Bank Resolution Corporation (IBRC, (formerly Anglo Irish Bank)) formally commenced last month. The loans will be offered for sale at a price determined by independent valuers engaged by the liquidators of the bank. 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. NAMA will reportedly impose its own haircut on any loans transferred to it. The loans relate to both commercial and residential property in Ireland and the UK.

The loan book has been divided into four parts and is broadly summarised below:

Project Evergreen

  • Irish originated corporate loans
  • 475 loans spanning 52 borrowers
  • Nominal gross loan balance of €3.5 billion

Project Rock

  • UK originated commercial real estate loans (CRE)
  • 2,309 loans spanning 331 borrowers
  • Nominal gross loan balance of €7.6 billion

Project Sand

  • Irish originated residential mortgages
  • 17,411 loans spanning 13,246 borrowers
  • Nominal gross loan balance of € 1.8 billion

Project Stone

  • Irish originated CRE loans with collateral spread across Ireland (46%), UK (33%), Continental Europe (18%) and rest of world (3%)
  • Nominal gross loan balance of €9.2 billion

It is reported that Irish debt-bid veterans such as Apollo, Lone Star and TPG are actively preparing to bid. Some other fund and equity houses are reportedly waiting for the sale by NAMA of the transferred loans at a more attractive discount.

The liquidators have been instructed to sell the assets by 31 December 2013.

NAMA Portfolios
It is reported that NAMA is re-opening bidding on a €320million portfolio of loans and assets known as Project Club that it put on the market earlier this year but withdrew. The portfolio is said to comprise a group of non-performing commercial property loans connected to a series of retail properties and development sites within the commuter belt of Dublin. CBRE has reportedly been retained to sell the loan portfolio.

NAMA is also reportedly being approached by private equity groups to buy €1.5 billion in NAMA loans linked to the O’Flynn Group. The loans which are secured on properties in Ireland, the UK, Germany and Spain, have a reported annual rent roll of €75 million.

It is reported that NAMA recently sold the €810 portfolio of loans relating to property developer David Courtney to a consortium comprising US investment group Starwood Capital Group, Key Capital in Dublin and UK-based Catalyst Capital.