Ireland’s National Asset Management Agency plans to sell real estate loans with a face value of 600 million euros ($670 million), two people with knowledge of the matter said.
The loan portfolio, known as Project Arch, was mostly used to acquire hotels and development plots in Irish cities including Galway, Dublin and Kilkenny, said the people, who asked not to be identified because the information is private. The loans will be sold at a discount, the people said. NAMA spokesman David Clerkin didn’t return a call seeking comment.
NAMA bought more than 70 billion euros of risky commercial real estate loans from Ireland’s banks at a 58 percent discount to face value and has since sold loans to private-equity funds and real estate investors at a fraction of their original amount.
European banks and asset managers will sell as much as 70 billion euros of real estate debt and foreclosed assets this year as they continue to repair their balance sheets following the financial crisis, Cushman & Wakefield said in an April 13 report.