Irish bad bank NAMA has confirmed the sale of the €1.8 bn Project Tower loan portfolio to Blackstone Real Estate Partners Europe IV.

Irish bad bank NAMA has confirmed the sale of the €1.8 bn Project Tower loan portfolio to Blackstone Real Estate Partners Europe IV.

The package of Irish, German and UK loans are linked to properties built by Irish developer Michael O’Flynn and his companies and are believed to have traded for €1.1 bn, reflecting a discount to face value of nearly 40%.

Project Tower consists of a €266 mln performing sub-portfolio secured by a UK-led student accommodation package of 11 assets in the UK and one each in Germany and Spain; a €540 mln sub- and performing package secured by 23 UK investment properties, five UK development schemes and six German investment properties; a €1.02 bn sub- and non-performing portfolio of around 100 investment properties and developments throughout Ireland.

The portfolio relates to loans secured on assets under the control of the O’Flynn Group. The assets are located primarily in Ireland, the UK and Germany.

Commenting on the transaction, NAMA Chief Executive, Brendan McDonagh said: 'We are very pleased to have completed this transaction. It provides further evidence of the current and continued strong investor appetite for real estate assets and property-related loans in Ireland and in other jurisdictions to which NAMA has a significant exposure.'

UBS advised NAMA.