Mick Wallace (Wexford, Independent)
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138. To ask the Minister for Finance the details of the sales process engaged in by NAMA in respect of Project Shift; the reason the loans were not included in the Project Eagle loan sale; 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; if the NAMA debtor in question had engagement with the bidders prior to the sale of the portfolio; and if he will make a statement on the matter. [20937/17]

Michael Noonan (Limerick City, Fine Gael)
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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 in the Project Shift transaction.

The Project Shift sale comprised a portfolio of German property assets held by a Northern Ireland based debtor. I am advised that the marketing process for Project Shift began in June 2013 as an asset sale being conducted by the debtor with NAMA's consent. This was in advance of NAMA’s decision to place the Project Eagle portfolio on the market for sale. The Project Shift sales process was at the ‘sale agreed’ stage before the launch of Project Eagle. However, the sale did not complete prior to Cerberus being selected as the preferred bidder for the Project Eagle portfolio. Given that the same purchaser was involved in both transactions, it made sense to complete the Project Shift transaction as a loan sale rather than an asset sale and thereby complete the disposal of all of the debtor’s loans to Cerberus.

I am advised that the debtor's Project Shift sale advisor, Savills, approached some 117 prospective investors and that 12 investors submitted first round offers within the relevant bid deadline. I am advised that NAMA, acting on the advice of the debtor's sales advisor, consented to the sales advisor inviting eight investors into a second round of bidding. The eight investors were provided with access to a detailed electronic data room to carry out further due diligence. I am further advised by NAMA that seven of the shortlisted investors submitted second round offers by the bid date for this transaction. On the advice of Savills, the debtor's sales advisor, NAMA consented to the debtor entering into exclusive discussions with Cerberus which had submitted the highest bid after an open, transparent and competitive open market sales process. The Deputy will also be aware that the Comptroller & Auditor General noted, in his review of Project Eagle last year, that the Project Shift sales process was openly marketed and that it had commenced prior to Project Eagle.

There is no prohibition on debtors engaging with potential purchasers prior to the launch of a sales process.