Deutsche Bank has been selected as the preferred bidder for NAMA’s €785m Project Maeve, paying around €97m for property developer Gerry Barrett’s loan portfolio, CoStar News has learned.
Pricing reflects approximately 12 cents in the euro or an 88% discount on the original principal balance, which is indicative of the portfolio’s poor performing assets.
Underbidders included Angelo Gordon, Oaktree Capital Management and Marathon Asset Management, with the latter having previously acquired loans owned by the property developer off-market. CoStar News broke the four-strong finalists middle of last month, please click here.
Project Maeve, named after Ireland’s mystical Queen Maeve of Connacht whose portrait used to grace the old Irish one pound note, is secured by 13 assets including three boutique hotels and the Scotch Hall shopping centre in Drogheda.
The hotels’ performance is not considered strong while NAMA’s capital expenditure programme for Scotch Hall shopping centre has far from turned the asset around amid strong local competition and ongoing weak occupancy levels.
The three hotels are: the five-star G Hotel in Galway, the only five-star hotel in the city; the four-star D Hotel in Drogheda and the four-star Meyrick hotel in Galway.
Additionally, there are retail and residential properties in Galway, one property in Portugal as well as commercial and residential development sites.
The bulk of Project Maeve’s €7.6m total annual income is derived from the assets in Galway and Drogheda, including a combined 2015 forecast EBITDA of €1.8m for the three hotels.
Project Maeve was previously dubbed Project Milner.
NAMA, Deutsche Bank and Cushman