Starwood Capital and PIMCO submitted final bids last week for NAMA’s €810m Project Aspen pricing the Irish non-performing loan (NPL) below €190m, which would reflect at least a 76.5% discount.
Project Aspen is comprised of 30 commercial property loans which were extended to Irish property developer David Courtney by a mix of Irish banks prior to the global financial crisis, including the formerly named Anglo Irish Bank, Bank of Ireland and Allied Irish Bank.
Courtney’s loans were extended to Regeneration Developments Limited, which also lists Jerry O’Reilly and Terrence Sweeney as directors.
Starwood’s bid is in conjunction with Courtney and advisory firm Key Capital, while PIMCO has partnered with Avestus Capital Partners, the European real estate investment and asset manager.
NAMA, which has instructed Eastdil Secured to sell Project Aspen, is expected to pick a winner in the coming week or two.
The 30-strong Project Aspen NPL, which was brought to market in February, is majority secured by commercial real estate in Dublin, and broadly with a 50: 50 office and retail mix.
Project Aspen secured assets includes a police headquarters in central Dublin, for which value can be enhanced by re-gearing the maturing lease and the development at Merrion Gates in Sandymount.
Separately, Starwood and PIMCO are bidding for separate components of Commerzbank subsidiary Hypothekenbank Frankfurk’s performing and sub-performing UK property loan book.
Starwood is competing against Lone Star for the sub and non-performing pool, while PIMCO and Wells Fargo are competing for the larger performing pool. A successful trade remains far from certain.
NAMA has a second Irish NPL, the circa €230m Project Club, which is expected to finally come to market in the coming two to three weeks.
Unlike with Project Aspen, for which there were no recent valuations for the underlying properties initially provided to bidders, valuations have been sought for Project Club, which partially explains the delay in the release of the datatape to prospective bidders.
Project Club, which is being sold for NAMA by CBRE, is secured by loans extended to property developer and investor, Eamonn Duignan.