It is today being reported that a portfolio of loans associated with the British developer, Cyril Dennis, which had been transferred to NAMA and which have a face value of €600m (GBP 515m) are set to be sold for GBP 280m (€326m) to an investment company called Orion Capital Partners. If the reported details are correct the sale price would represent a 46% discount on the face value of the loans. At least some of the loans are understand to have been originally advanced by Irish Nationwide Building Society which has now been merged with Anglo to form the Irish Bank Resolution Corporation. INBS funded the redevelopment of the Le Provencal hotel in France into 50 luxury apartments. It is not known how much NAMA paid for the loans, or if the Agency will see a profit on the transaction as NAMA does not generally comment on individual transactions.
In August 2011, it was reported that Orion had bought from NAMA the 1-acre Jamahiriya School site at Glebe Place (situated south of Kings Road, between Kings Road and Chelsea Embankment in Chelsea in south west central London). The site had originally been bought by Derek Quinlan and a group of private investors. Orion is understood to have paid GBP 80-90m (€93-105m) for that site.
CB Richard Ellis was marketing the loans.
I think it was Mike Phillips at Property Week who broke this report early this afternoon but the story is only available to subscribers at Property Week, and the Estates Gazette has a summary here. It was Oliver Shah at the British Sunday Times (also not available online without subscription), who on 9th October 2011, first reported the loan portfolio was being offered for sale..
NAMA Wine Lake 
Don’t believe they paid anything near that. Could this be more spin and bollocks from NAMA?!
The Irish taxpayer took a €450m hit today and NAMA is spinning this as a great result…
@BR, because NAMA won’t generally release figures on individual transactions, we may never know. And yet we do know that CBRE was marketing Cyril Dennis loans with a face value of €600m. So whose confidentiality is NAMA protecting?
CBRE were guiding €300m value on the portfolio. There is not a debt fund on this planet that would pay above the Open Market Value (OMV) for a loan portfolio. For extremely good loans avg. discount is 15% to OMV. For this portfolio It would be more like 30-40% discount to OMV due to the cost and difficulty in enforcing French mortgage security, even when it is well written, which I doubt the donuts in INBS were able to do.
This is more spin by NAMA to make us believe they are doing a good job.
re: Confidentiality; Yes, isn’t it amazing that all the leaks give reference to the identity of the borrower but very little is said on how much profit (ahem) NAMA is making on the disposals.
The Estates Gazette is reporting the loans were purchased for €200m. Much more like it. Therefore NAMA would probably have lost money on this disposal. Oh well something for Daly and McDonagh to spin into a positive. €400m loss on the loans. Well done lads.
@NWL
“36% discount on the face value”
I think that this should read 46% discount.
B
@Brian, correct. And corrected! Thank you.
WSJ reports ‘Orion raised €1.28 billion in 2009 and is in the process of investing that capital, taking advantage of the financial difficulties many property investors have faced down the economic downturn’
http://online.wsj.com/article/SB10001424053111903341404576481732876506462.html
Mortgage REIT’s still on the horizon in the UK.
http://www.costar.co.uk//en/assets/news/2011/November/Mortgage-REITs-could-be-solution-to-debt-overhang/?dm_i=UQT,MI48,4KQZWH,1TMRU,1
@NWL is that euro’s to euro’s inside the brackets,thanks,taking a look at the math,to comp. the book,may be having a blonde moment here,can not seem to get to same % collapse in value of loans.EG utilized 50%.
One of the most important pricing considerations is % of performing loans,considering the amount of deleveraging about to happen via Euro banks,NAMA may have made correct decision here in fairness.
For the ‘conspiracy theorists’ out there !
‘A wholly owned and operationally independent subsidiary of Jones Lang LaSalle, LaSalle Investment Management is active across a range of real estate capital and operating markets including private and public, debt and equity, and covers all real estate asset types across Europe, Asia Pacific and the Americas’
http://www.joneslanglasalle.com/pages/InvestmentManagement.aspx
‘Aref Lahham, a founding director of Orion Capital Managers, says: ”We welcome back Roberto, who we worked with at LaSalle Investment Management in Paris before setting up Orion.’
http://www.europe-re.com/system/main.php?pageid=2616&articleid=13640
@jg; Before this whole saga is over the conspiracy theorists will have a field day. I’m just keeping notes!
@wstt thanks for skinny on Morrison, was it for sale w/o flag,no operator ?
Any news on the ‘sister’ in the mountains,was some chatter about it recently.
A ordaniary decent Irish man can’t have few pints,in NY or Palm Beach,without getting questioned by swarthy,sweaty,NY scavengers.Is there any chance that the Dublin hotel,that had a equine themed bar is quietly on the market,or about to hit it.
It was the training ground for Alois Matzelsberger.Subject of much inquiry and questions,lately.
@jg; I think that the Morrison was clean but I will check It is making about €1.5 million. It should do well when things get better and room rates edge up. The agents were amazed at the price. London & Regional (buyers of Four Seasons) went hard for it. I don’t know if they were the successful bidder, but it is surprising that it made more than the Four Seasons! No Irish money on the table – probably because there is so little left. No news about the mountain, but there is a bid on the horse at €8.5 million – considered derisory, but I would be surprised if it makes more than the mid-teens because of the contract with the operator.
@jg, Nice story about Alois. I never knew that the Shelbourne had historic German ties!
Feeling very frustrated along with most Irish at present as I watch the foreign carpetbaggers come in and buy the country’s best assets cheap. As Paddy Kavanagh wrote
“When Drake was winning seas for England,
We sailed in puddles of the past.”
@WSTT as always thank you,oh ‘contracts’ they can always be revised,retrospectively,there are quite a few jockeys looking closely at that gelded stallion.Big convention in NY starting next week ICSC,worth pencilling in,much more useful and productive that Wales-checked with AC dept. appears we may be able to stretch austerity budget on your next visit.
@WSTT cant make head nor tail of it myself,seriously bewildered,is there a PLAN,longer conservation.