NAMA prepping €8bn smaller assets for sale

The asset manager is seeking an advisor to help package the assets for sale.

Ireland’s National Asset Management Agency (NAMA) is planning the sale of around €8 billion in par value loans, said a person familiar with the situation. The sale was first reported by The Irish Times on Saturday (31 January).

The state-controlled bad asset manager, which took around €74 billion in loans off the balance sheets of Irish lenders, is now preparing to sell the smaller loans on its book. These loans are less than €75 million in size and relate to around 500 individual borrowers, the person said.

NAMA will appoint an advisor to help ready the sale and is considering packaging the loans into distinct portfolios that it will put up for sale over the course of this year and into 2016. 

It is not clear what discount was applied to the assets when they were acquired by NAMA, though the average discount applied by NAMA was 57 percent.

The planned sales follow a series of portfolio sales by the agency last year. In April, Cerberus bought a €4.5 billion loan book from NAMA which was followed in May by Blackstone’s purchase of a €1.8 billion portfolio, known as Project Tower.

NAMA was expected to wind-down its activites in 2020 but last year, NAMA chairman, Frank Daly, said that it was quite likely that the agency could finish its work by late 2017 or 2018.