Friday 25 May 2018

US investment firms Goldman Sachs and CarVal bidding for NAMA loan portfolio

Brendan McDonagh of the NTMA and NAMA
Brendan McDonagh of the NTMA and NAMA
Peter Flanagan

Peter Flanagan

US investment firms Goldman Sachs and CarVal are bidding for Nama’s Project Arrow portfolio, Bloomberg has reported.

Project Arrow is a portfolio of non-performing property loans with a par value of €7.2bn across hundreds of borrowers.

It will likely be sold at a significant discount.

This is the biggest portfolio to have been put on the market by Nama so far.

According to recent figures from industry finance publication Costar, there are 1,532 loans in Project Arrow attached to 367 separate borrowers.

The single biggest loan in the portfolio is for under €10m, and no property to which loans are attached in the portfolio has a value of more than €5m.

Of the properties in Project Arrow, 836, or 36pc, are in receivership, while 96pc of the total properties to which the loans in the portfolio are attached are in Ireland. Only 3pc are in the UK.

Costar said that €2.81bn, or 39pc of the nominally valued loans in Project Arrow are secured by residential properties. Another €2.52bn, or 35pc, are secured against mainstream commercial properties; while €1.73bn, or 24pc, are attached to land and development assets. Another 2pc, or €144m, are secured against hotel and leisure assets.

Nama is accelerating its asset sales as it seeks to redeem 80pc of its “Nama bonds” by the end of next year.

Project Arrow was formally put on the market last month.

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