NAMA announces sale of the Project Tower loan portfolio

NAMA announces the sale of the Project Tower loan portfolio to Blackstone Real Estate Partners Europe, Blackstone is one of the world’s leading investment and advisory firms. The portfolio relates to loans secured on assets under the control of the O’Flynn Group which was one of the biggest Irish construction companies. The assets are located primarily in Ireland, the UK and Germany.

The Project Tower portfolio has a book value of €1.8 billion. Blackstone’s is believed to have paid €1.1 billion, which reflects an approximate 37% discount to the outstanding balance and €100 million above the €1 billion “reserve price” mandated by NAMA, which is effectively the minimum price indicated to all parties at which a trade would be accepted.

The deal is expected to complete this week. NAMA said it would not disclose the terms of the deal as they were commercially sensitive. UBS sold Project Tower on NAMA’s behalf