NAMA is believed to be in the final stages of selling an €85m junior loan backed by Treasury Holdings’ €300m Irish retail and office portfolio.
Ireland’s National Asset Management Agency appointed a large panel of advisers last January to sell loans, but this is the first deal that is close to coming off.
The 16 properties, known as the Castle Market Holdings portfolio – held by Real Estate Opportunities (part owned by Treasury Holdings) – were financed by €425m of Eurohypo debt in 2005, which was securitised in the €375m Opera Finance (CMH) CMBS.
Anglo Irish provided a junior loan outside the securitisation, which was transferred to NAMA in 2010 following the bank’s rescue.
Financial adviser Brookland Partners is handling the sale and has received strong interest from the likes of Kennedy Wilson, Deutsche Bank, Delancey and KKR, as appetite for Irish assets has picked up in recent months.
The securitisation matures in January and the special servicer, Eurohypo, advised by Cairn Capital, needs to decide what action to take. One source said a straight sale of the portfolio would crystallise large losses for class B noteholders and all other junior noteholders.
A loan extension, allowing for a managed disposal of the assets over time into what is increasingly seen as a recovering market, could yield greater recoveries for noteholders.
The class D noteholders – the controlling class that have the ability to replace the special servicer – are beginning to organise themselves, with one investor approaching others in its tranche to consider appointing an operating adviser, which would interact with the special servicer.