Saturday 18 January 2020

US investors line up bids as Nama sells off €4.7bn portfolios

Brendan McDonagh
Brendan McDonagh

Dara Doyle and Peter Flanagan

Cerberus Capital Management and CarVal Investors are among funds circling two portfolios with a combined par value of €4.7bn worth of property loans being sold by Nama.

Lone Star Funds is also interested in the loan portfolios, known as Project Ruby and Emerald.

First-round bids are due on April 20.

While the loans have a par value of €4.7bn, they will be sold for significantly less than that. Project Ruby and Project Emerald, as the portfolios are known, contain loans tied to apartments, as well as commercial property, development land and hotels.

Project Emerald is made up of loans with a par value of €2.5bn from 16 borrowers. Those loans are secured against 236 properties.

While most of the loans in Project Emerald are related to commercial property, more than a fifth of the underlying properties are residential.

By value, just over a fifth of the properties are in Dublin, while about half are in the rest of Ireland. The remainder are located in Europe.

Project Ruby, meanwhile, involves loans that have a face value of €2.2bn tied to 15 borrowers. The debts are secured against 253 properties.

Just over 11pc of the portfolio is residential, with the vast majority of the portfolio being made up of commercial properties. More than 97pc of the properties are in Ireland.

Many of the US funds bought property and loans at the bottom of the market and are sitting on profits of tens of millions of euro. Cushman and Wakefield is managing the sale.

Cerberus and CarVal declined to comment; Lone Star didn't immediately respond to a request for comment. Nama, headed by Brendan McDonagh, also declined to comment.

Nama is quickly selling off its remaining assets.

Specialist bank Investec has said it believes that Nama's forecast of €2bn surplus is "conservative" and said it will likely exceed €3bn.

Nama has said it will meet its target of redeeming 80pc of its senior debt nine months ahead of target. (Additional reporting by Bloomberg)

Irish Independent

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