There was confirmation last Friday 11th January 2013 of James Wallace’s exclusive story on CoStar last week that NAMA had disposed of its €85m of junior loans to the so-called Opera Commercial Mortgage Backed Securities (CMBS) of 16 Irish properties, when a notice was issued on behalf of the buyers of the junior loans, Northwood, to the Irish Stock Exchange.
The notice was issued by a company called Brooklands Partners LLP on behalf of the buyer which is identified as NW Finance Company SaRL, “an affiliate of Northwood Investors LLC”.
The notice says Northwood “is engaging with the Servicer and Noteholders to discuss the potential options to maximise recoveries in the context of the upcoming Senior Loan and Junior Loan maturity date of 15th January 2013, including proposals to restructure the Senior Loan, the Junior Loan and the Notes.”
Northwood reportedly acquired the €85m of junior loans for about €5m from NAMA, and the betting is they will now try to manouevre themselves into a pivotal position to ultimately benefit from the distressed senior loans and the underlying portfolio of Irish property which includes the Merchants Quay shopping centre in Cork and the Stillorgan shopping centre. Treasury Holdings was originally the driving force behind the fund.
Northwood has engaged Brooklands Partners who might be familiar to those following the drama at Noel Smyth’s Alburn Real Estate UK CMBS. They was engaged by Rotschild to provide advice in April 2011. Seems like that company may become past-master experts in leveraged Irish property funds.
UPDATE: 11th February, 2013. According to the Sunday Times (Irish Edition) yesterday – not available online without a subscription – the lender to the CMBS, Eurohypo has commenced talks with at least two potential buyers of the assets underpinning the CMBS. Surprise, surprise, one of the potential buyers is Northwood Investors, the other is one of our new best friends forever (or at least for 2-5 years) Kennedy Wilson. There is a new detail reported, Northwood’s purchase in December 2012 of €85m in junior debt relates to the so-called “Castle Market Holdings” portfolio