Sunday 27 May 2018

Goldman Sachs weighs purchase of €4.7bn Nama loan portfolios

A Goldman Sachs sign above the floor of the New York Stock Exchange. Photo: Reuters
A Goldman Sachs sign above the floor of the New York Stock Exchange. Photo: Reuters

Dara Doyle

Goldman Sachs Group is weighing a bid for two massive bundles of Irish loans with a combined face value of €4.7bn being sold by the National Asset Management Agency (Nama), according to two people with knowledge of the matter.

Cerberus Capital Management, CarVal Investors and Lone Star Funds are also considering whether to bid for the loans held by the Nama, according to the people, who asked not to be identified because the process is still under way.

The portfolios, known as Project Ruby and Emerald, will probably be sold for less than the face value of the loans.

Project Ruby and Project Emerald 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 that bundle is linked to residential sites, with the vast majority of the portfolio being made up of commercial properties.

Cushman and Wakefield is managing the sale.

First-round bids are due on Wednesday.

Goldman Sachs, Cerberus, CarVal and Lone Star declined to comment, as did NAMA. (Bloomberg)

Irish Independent

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