Belfast Telegraph

Four US firms in hunt for NAMA portfolio

By Peter Flanagan

Four US investment firms have bid for the biggest loan portfolio Nama has brought to market so far.

The distressed loan specialist Apollo Global Management, Cerberus Capital Management, and a consortium of Goldman Sachs and CarVal Investors have submitted bids for the portfolio known as Project Arrow.

Arrow is a colossal portfolio. It is made up of more than 1,500 loans tied to over 350 individual investors. The loans are secured against more than 2,400 properties. It has a par value of around €7.2bn (£5.2bn).

Project Arrow will also be the biggest single portfolio to have been sold by Nama, dwarfing the €4.5bn (£3.3bn) Project Eagle of Northern Irish loans it sold last year.

The vast majority of the portfolio is tied to properties in Ireland, although they are relatively small in value individually. According to CoStar News, the largest loan is less than €10m and none of the properties is valued at more than €5m at this stage.

The final sale price, however, is likely to be at a deep discount to that price.

A little more than a third of the loans are in receivership.

Just over €2.8bn (£2bn), or 39%, of the nominally-valued loans are secured by residential assets. Another 35% of the loans are secured by a mixture of mainstream commercial properties, while just under a quarter of them are secured by land and development assets.

The remainder are tied to hotel and leisure assets.

Nama declined to comment. The deal is being managed by Cushman & Wakefield on behalf of the Republic's bad bank.

This is the latest sale by Nama which has accelerated asset sales as it seeks to redeem at least 80% of its so-called "Nama bonds" by the end of next year.

Belfast Telegraph