Project Albion - Nama Sells Loan Book For £115m

Hot on the heels of the announcement yesterday that NAMA had sold Project Maeve to Deutsche Bank, news is breaking today that Oaktree Capital Management has won NAMA’s Project Albion, paying circa £115m for the bad bank’s first-ever multi-borrower loan portfolio, secured by predominantly UK commercial properties.

The purchase price, at just below £115m, reflects around 51 pence in the pound for the Project Albion non-performing loan portfolio (NPL), which had an original principal balance of £226m.

It has been reported that the underbidders included BAML, CR Investment Management and Canyon Capital Advisors. 

Project Albion, as NAMA’s first multi-borrower loan portfolio, marks a departure from de-leveraging pools of loans by a sole borrower group; it is comprised of 22 separate loans derived from eight separate borrowers.  

The loans are predominantly from legacy Allied Irish Bank and are secured by 23 UK commercial properties and a further two assets in Portugal. All but one of the 22 loans are in default.

Assets includes the Mar Hall hotel, the five-star luxury hotel near Glasgow once owned by the Earl of Mar and frequented by celebrity guests including, among others, Bob Dylan, Beyoncé, Coldplay, Oasis and Brad Pitt. The projected EBITDA for Mar Hall is around £1.2m for 2015.

Project Albion also includes seven offices, a leisure asset, one stabilised industrial estate in Scotland, five residential investment properties in regional cities and more than 300-acres of land across 10 separate sites.

Project Albion, named after the oldest historic name for the British isles, has a gross annual rental income of around £6.5m and a weighted average unexpired lease term of around three years. 

This sale again demonstrates that the Irish market is leading the line in terms of loan sales of legacy institutional bank debt positions.  This will continue well into 2016 in our view.

If your loan has been sold, GDP Partnership would like to speak with you, as we have capital partners now in place which will give you an opportunity to refinance your facilities away from the new owners of your loans.

Conor Devine MRICS 

Twitter @Conor_Devine