NAMA’s First Vendor-Financed Sale Attracts Prudential, Atlas

The first property sale by Ireland’s National Asset Management Agency that it’s helping finance has attracted bids from six companies including Atlas Capital Group LLC and Prudential Plc, a person familiar with the matter said.

One Warrington Place, an office block in central Dublin, may sell for more than 25 million euros ($34 million), said the person, who declined to be identified because the information is private. NAMA will provide as much as 70 percent of so-called vendor debt finance to help sell the property.

NAMA was set up to purge Ireland’s banks of 74.2 billion euros of risky commercial real-estate loans, for which it paid 31.7 billion euros. While the agency prefers to help finance purchases when they involve Irish properties, it is also considering using vendor finance to back sales of loans, Chief Executive Officer Brendan McDonagh said in an October interview. Most of NAMA’s disposals next year may be loans, he said.

The value of Irish investment property fell 4.6 percent in the three months to the end of September, CBRE Group Inc. said on Oct. 31. Investment properties have seen a decline of almost 65 percent from the peak, it said.

At least five bids for Warrington Place were for more than 25 million euros, three people familiar with the matter said, declining to be identified because the information hasn’t been released publicly.

One Warrington Place was expected to sell for 28 million euros when it was put on the market, according to The Irish Times. NAMA’s McDonagh said in October that the property attracted 30 expressions of interest.

NAMA spokesman David Clerkin, Atlas director Taylor McWilliams and Paul Griffin, a spokesman for Prupim, Prudential’s real estate asset manager, all declined to comment.

To contact the reporters on this story: Joe Brennan in Dublin at jbrennan29@bloomberg.net; Neil Callanan in London at ncallanan@bloomberg.net.

To contact the editor responsible for this story: Ross Larsen at rlarsen2@bloomberg.net.

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