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US firms shortlisted for €7.2bn NAMA book

A handful of bidders have been shortlisted for the €7.2 billion Project Arrow loan book, the largest portfolio put up for sale by NAMA yet.

Goldman Sachs and private investment firm CarVal Investors have been shortlisted in their joint-bid for a €7.2 billion Irish loan book called Project Arrow, put up for sale by Irish ‘bad bank’ the National Asset Management Agency this summer.

Separate bids from Cerberus Capital Management and Apollo Global Management have also been progressed, PDI understands. A second round of bids is due in October. The non-performing loan book is expected to sell at a fraction of the par value, as reported by Bloomberg.

The loan book is comprised of 1,532 loans, backed predominantly by property in Ireland.

NAMA, CarVal and Cerberus declined to comment. Goldman Sachs and Apollo had not responded to a request for comment at time of publication.

The portfolio of loans is comprised of around 367 borrowers and 2,402 properties, according to press reports. Ninety-six percent of the assets are located in Ireland and three percent in the UK.

Thirty-nine percent of the property is residential, while 35 percent is commercial. Another 24 percent is development and 2 percent is hotel and leisure.

Cushman and Wakefield’s corporate finance team is selling the loan book on behalf of NAMA.

Established in 2009 to oversee the work-out and sell-off of loans which resulted from the Irish property and banking crisis, NAMA had €12.5 billion in loans and receivables net of impairment as of 31 March 2015.