The National Asset Management Agency (NAMA) has sold an €85m loan linked to a portfolio of high-end offices and retail units valued at €290m, for a price thought to be less than 10c in the euro.
State-owned NAMA declined to comment on the sale. The loan is part of €460m of debt run up Johnny Ronan and Richard Barrett and secured on properties controlled by their former Real Estate Opportunities business.
NAMA sold its share of the debt propping up the portfolio to US bidder Northwood Investor, according to the specialist property publication CoStar News.
The price paid is understood to be less than 10pc of the face value of the debt.
NAMA has never revealed how much it paid when it took control of the debt.
The new owner will struggle to make a recovery however, because the €460m secured on the 'Opera' portfolio is more than the value of the assets. The debts fall due on Tuesday next week. The €85m that NAMA was owed is last in the queue to be repaid.
Northwood is likely to have acquired the debt simply to get a seat at the table when talks on how to "restructure" the debts get under way.