NAMA has selected three finalists to progress to the final stage for the acquisition of its third multi-borrower non-performing loan (NPL) portfolio, the €608m Project Arch pool, as the bad bank’s largest-ever nominal NPL, the €7.2bn Project Arrow, is officially launched.
Project Arch is comprised of loans extended to five borrowers with the bulk of value and assets owned by property developers Jerry O’Reilly and Terry Sweeney as well as investor Ronan O’Caoimh.
CoStar News has learned that CarVal Investors, Deutsche Bank with Alanis Capital and Apollo Global Management have all progressed to the final round on Project Arch.
Bids are understood to have come in the €150m-€160m range, which reflects a circa 6% to 12% discount to the approximate real estate value, which is approximately €170m. The current indicative pricing implies a discount to unpaid principal balance of between 75% and 73%.
Binding bids are expected to be called for the final week in July.
Project Arch is comprised of 77 properties, of which 72 are in Ireland while three assets are in the UK and two are in the US.
The majority of value in Project Arch is derived from the assets securing loans to O’Reilly, Sweeney and O’Caoimh.
O’Reilly’s loans are secured by arguably Project Arch’s most coveted asset – the four-star Radisson Blu Hotel and around €144m, or 2%, are secured by hotel and leisure assets.