Mick Wallace (Wexford, Independent)
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18. To ask the Minister for Finance if it is appropriate for the National Asset Management Agency Project Arrow to be completed, while investigations into the purchase of Project Eagle are ongoing; and if he will make a statement on the matter. [40307/15]

Michael Noonan (Limerick City, Fine Gael)
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The Deputy is aware that all sales are conducted by NAMA in accordance with its statutory independent commercial mandate.  Whilst I therefore have no role as Minister for Finance in such sales, I have full confidence in the transparent and competitive manner in which all NAMA sales are conducted.   

Against that backdrop, the sale of the Project Arrow portfolio of loans by NAMA represents another significant deleveraging and risk mitigation milestone for NAMA.  The cash proceeds raised from the sale will be applied towards redeeming NAMA's senior debt, which is guaranteed by the Irish State.

This sale is fully in line with NAMA's publicly stated policy, in accordance with its obligations under Section 10 of the NAMA Act, of taking advantage, to the greatest extent possible, of favourable Irish market conditions to accelerate disposals in an orderly way with the target of redeeming 80% of its senior debt, a cumulative €24 billion, by end 2016 and all of its senior debt by end 2018.  Following on from the Section 227 review of NAMA which was conducted by my Department, I fully endorsed the NAMA Board's policy in this respect.  In addition to ensuring, in accordance with Section 10 of the Act, that NAMA obtains the best achievable return for the State on its acquired bank assets, NAMA's accelerated deleveraging is creating wider collateral benefits for Ireland.  This can be seen for example in terms of the creditworthiness of the sovereign.  I welcome therefore the fact that, as signalled by this sale, NAMA will continue to take advantage of the current favourable market conditions to sell loans and assets at favourable pricing for the Irish State.

I am advised that the sale of Project Arrow was conducted fully in accordance with NAMA's policy that the sale of all loans and the sale of properties by debtors and receivers should, wherever feasible, be openly marketed to ensure that the best price available in the market at the time of the sale is achieved in all instances.  As has been publicly outlined by NAMA, Project Arrow was launched onto the open market on 6 July 2015.  Reflecting the continued strong investor interest in Irish property, 17 prospective bidders were provided with access to the Phase 1 data room by Cushman and Wakefield, the loan sale broker appointed by NAMA to execute the sale.  Indicative Phase 1 bids were received from five bidders on 14 August 2015 and three bidders were shortlisted by the NAMA Board for Phase 2.  Binding and valid bids were received from two bidders on 12 October 2015 and clarification on elements of the two bids was sought and received subsequently.  On 23 October 2015, NAMA announced Promontoria Holding 176 B.V. an affiliate of Cerberus Global Investors ("Cerberus") as the preferred bidder, subject to contract.  The NAMA Board decision was based on the strong and clear recommendation of Cushman & Wakefield. 

Cerberus has therefore emerged as the preferred bidder for the Project Arrow portfolio following an open market, robust and highly competitive sales process. To my knowledge, there has been no suggestion of any wrongdoing on the part of NAMA or Cerberus in relation to any aspect of the Project Eagle sale transaction. Accordingly, I cannot see why NAMA should not proceed with its intention of completing the sale of the Project Arrow portfolio to Cerberus, which, I understand, has submitted the highest bid.  I also note reports that Cerberus has been successful in their recent bid to acquire a major loan portfolio in the UK from a UK Government agency.