NAMA launches sale of £226m Project Albion UK loan portfolio

NAMA yesterday launched the sale of the £226m Project Albion non-performing loan portfolio, in the Irish bad bank’s first ever multi-borrower loan portfolio believed to be comprised of legacy Allied Irish Bank loans secured by predominantly UK commercial properties.

Project Albion is comprised of 22 loans across eight separate borrower connections and secured by 25 assets, and marks a departure of loan portfolio sales comprised exclusively of one borrower connection per loan transaction.

One of the borrower connections is secured by collateral in the Netherlands. All but one of the 22 loans are in default.

CoStar News understands that Project Albion, which is 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.

Assets includes seven offices, one high end hotel and leisure asset, one stabilised industrial estate in Scotland, five residential investment properties in regional cities and more than 300 acres across of strategic land across 10 separate sites.

In addition to Project Albion’s £6.5m annual gross rental income is projected EBITDA for the luxury hotel of around £1.2m for 2015.

First round non-binding bids have been called for 10 April.

Cushman & Wakefield’s Corporate Finance team in London has been mandated to sell Project Albion in one of four loan portfolio sales awarded to the team by NAMA.

NAMA is currently selling six separate loan portfolios – projects Arrow, Tolka, Jewel, Milner, Abbey and Albion – for a combined nominal value of approximately €12.9bn, although these loans will in certainly have been purchased for well below the blended 58% discount when NAMA was established.

the €8.4bn Project Arrow is secured by approximately 90% Irish real estate and 10% UK real estate, and is virtually all non-performing. For the full story, please click here;
the c.€1.5bn Project Tolka, secured by the loans of developers Paddy Kelly, John Flynn and Alanis, a property investment company controlled by the McCormack family;
the c.€1bn Project Jewel, secured by Chartered Land’s Dundrum Town Centre, as well as two smaller shopping malls – for the full story, please click here;
the €778m Project Milner, secured by Gerry Barrett’s 10-strong property portfolio comprised of 10 assets including the G Hotel in Galway and the D Hotel in Drogheda;
the c.€700-750m Project Abbey, the loan book of Pat Doherty’s Harcourt Developments. KPMG is selling the loan portfolio; and
the £226m Project Albion, a predominantly UK commercial property loan portfolio comprised of a eight borrower groups. There is also some exposure to assets in the Netherlands.
Cushman & Wakefield’s Corporate Finance team is mandated across four of the six loan portfolios – including a joint mandate with Lisney on Project Arrow, which is thought to be highly granular with loans around €5m and below and an aggregate real estate value below €1.5bn.

Project Arrow is expected to trade before the year end.

Separately, NAMA is understood to have issued requests for proposals for Project Jewel within the last week or two.

All parties declined to comment.

SOURCE – Co Star Finance

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