Ireland's National Asset Management Agency (NAMA) is selling 80% of the Project Aspen loan portfolio to a consortium led by Starwood Capital Group.
Ireland's National Asset Management Agency (NAMA) is selling 80% of the Project Aspen loan portfolio to a consortium led by Starwood Capital Group.
Other members of the consortium include Key Capital Real Estate and Catalyst Capital.
Under the terms of the agreement, Nama will sell the Irish loan portfolio to a newly created joint venture entity, in which it will retain a 20% stake. The assets have a par value of €800 mln.
The sale of the loan portfolio commenced in February 2013, with more than 60 parties involved in the process. Nama and Starwood entered into exclusive discussions in early April.
Nama said the sale 'enables it to capitalise on the current robust interest from global investors in Irish commercial property assets and at the same time participate in the continuing recovery of the Irish commercial property market'.
The Irish bad bank will provide a senior secured loan (vendor finance) to the joint venture, with an initial loan to value of less than 60%. The loan will carry a commercial rate of interest, and is expected to be repaid within five years.
'Since 2009, Starwood has taken on over $7 bn in non-performing loans as a key part of our distressed investment strategy,' said Jeffrey Dishner, senior managing director at Starwood.
Nama hired Eastdil Secured to manage the sale on its behalf.
