Written answers

Tuesday, 2 May 2017

Photo of Mick WallaceMick Wallace (Wexford, Independent)
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271. To ask the Minister for Finance the sales process engaged in by NAMA in respect of Project Nantes; if the process was an open and competitive process; the number of bidders or potential bidders that were involved in different stages in the process; if a restricted number of parties were invited to make offers; the actual number of parties that were invited to make a bid; and if he will make a statement on the matter. [20055/17]

Photo of Mick WallaceMick Wallace (Wexford, Independent)
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272. To ask the Minister for Finance the sales process engaged in by NAMA in respect of Project Aspen; if the process was an open and competitive process; the number of bidders or potential bidders that were involved in different stages in the process; if a restricted number of parties were invited to make offers; the actual number of parties that were invited to make a bid; and if vendor financing was provided; and if he will make a statement on the matter. [20056/17]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 271 and 272 together.

The Deputy will be aware that Section 9 of the NAMA Act provides that NAMA is independent in the performance of its functions and that, under Section 10 of the Act, its primary objective is to obtain the best achievable financial return for the State from its acquired loan portfolio. In this regard, I am advised that NAMA is confident it upheld its mandate on both of these transactions.

I am advised by NAMA that the marketing process for the Project Aspen loan portfolio began in January 2013 when NAMA’s loan sale adviser, Eastdil Secured, approached some 90 prospective investors. 29 prospective investors signed non-disclosure agreements (NDAs) and were provided with access to due diligence material relating to the portfolio. I am advised that 14 investors submitted first round offers by the deadline of 25 February 2013.

I am further advised that NAMA, acting on the advice of its loan sale adviser, agreed that the top three credible bidders be invited to a second round of bidding and that they be provided with access to a detailed electronic data room. I am advised by NAMA that two of the short-listed bidders submitted second round offers by the deadline of 2 April 2013 and that, on the advice of its loan sale adviser, NAMA entered into exclusive discussions with Starwood Capital Group which had submitted the highest bid after an open, transparent and competitive sales process.

I am advised that, on 2 May 2013, NAMA and Starwood Capital Group announced a joint venture relating to the sale of the Project Aspen portfolio. Under the terms of the agreement, NAMA sold the loan portfolio to the new joint venture entity, which was 20% owned by NAMA and 80% owned by a consortium led by Starwood. I am further advised that NAMA provided a senior secured loan (vendor finance) to the joint venture with an initial loan to value of less than 60%. The loan carried a commercial rate of interest and has since been repaid.

With regard to the Deputy's almost identical question on Project Nantes, I am advised that this transaction was in fact a debt refinancing transaction. Under sections 99 and 202 of the NAMA Act, NAMA is legally prohibited from disclosing information relating to its debtors or the assets securing their loans and, accordingly, NAMA is not in a position to disclose any additional information in relation to this transaction.

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