Wednesday 22 October 2014

NAMA targeting €3.5bn in sales this year as two loan books go on market

Anglo liquidators deny sale of any of its assets due to need for fresh valuation

Published 19/02/2013 | 04:00

Brendan McDonagh, NAMA chief executive and Frank Daly, NAMA chairman

NAMA expects to sell €3bn to €3.5bn of assets this year, as the agency moves ahead with the sale of two major portfolios of property loans.

The news comes as liquidators of the former Anglo Irish Bank dismissed reports that they are putting €2bn of property loans up for sale.

NAMA has faced recent criticism in the press for being seen to be slow in disposing of its almost €30bn of assets.

The agency has rejected the criticism, insisting it must act carefully in maximising value for taxpayers.

Last year NAMA, headed up by chairman Frank Daly and chief executive Brendan McDonagh, generated €4.4bn in cash, with €4.3bn of it coming from sales and much of the rest made on rents.

Portfolios

NAMA's new sales target was confirmed by a spokesman for the agency. It is in the market with two large scale portfolios of property loans, including debt linked to commercial assets in Dublin that are becoming increasingly popular with international investors.

Bids are understood to be due by the end of this month for NAMA's €810m 'Project Aspen' loan book that is being sold through agents Eastdil Secured.

The bids are expected to be a fraction of the nominal value of the loans, reflecting falls in property values since the boom. The smaller €350m Project Club is for sale through agents CRBE.

Meanwhile, Kieran Wallace, one of the liquidators of the former Anglo Irish Banks, recently better known as IBRC, said media reports of an imminent a sale of a €2bn loan portfolio held by the former bank are wide of the mark.

Liquidators now in charge of the bank cannot pull the trigger on any sales of Anglo assets before they have completed their own new diligence processes, he said.

Anglo book

A sale of the Anglo loan book dubbed 'Project Delta' has been in the works for some time after investment bank UBS was hired to advise the bank's former management on how to dispose of the assets. However new independent valuations must now be obtained by the liquidators for every Anglo asset before it can be marketed for sale, even in cases like Project Delta where detailed due diligence and valuation work has already been completed for the former management team.

The new rules are set out in the emergency legislation rushed in to shut down the former bank.

The liquidators have said that potential bidders are already making contact in relation to the €2bn of loan assets prepped by UBS, which could be broken up as they are sold.

It means that once liquidation gets under way in earnest, the huge pool of loans is likely to be among the first to go.

Irish Independent

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