NAMA did not achieve best financial outcome when selling off loans - report

The National Asset Management Agency (NAMA) did not achieve the best financial outcome when selling off loans linked to Quinlan Private, a report from the Comptroller and Auditor General has found.

NAMA did not achieve best financial outcome when selling off loans - report

The National Asset Management Agency (NAMA) did not achieve the best financial outcome when selling off loans linked to Quinlan Private, a report from the Comptroller and Auditor General has found.

The loans in Project Nantes were part of a bigger portfolio of loans with a combined par value at acquisition of €489 million.

Clairvue Capital Partners paid Nama €26.6 million for the loans, secured on properties bought by Quinlan Private, a partnership led by financial adviser, Derek Quinlan.

The C&AG Séamus Mc Carthy's office compiled their report in relation to their review of the NAMA’s management and disposal of the Project Nantes Loans and was presented to cabinet on Thursday.

Concerns which gave rise to the report centred around the adequacy of the process used by NAMA when selling the Project Nantes loans and the price achieved for the loans.

The report found errors and poor analysis by NAMA meant the target price decided for the loans was much lower that it should have been.

The loans in Project Nantes were sold for €27m, however the C&AG found they could have been sold for €56m.

The key finding from the report is that:"There is no basis to conclude that NAMA achieved the best financial outturn from the Project Nantes loan sale."

Sinn Fein's David Cullinane said the report was a case of déjà vu.

“The publication of this report is deeply troubling," he said.

"The report found that errors and poor analysis by NAMA meant that the proceeds for the project were significantly lower than they should have been.

“The report concludes that had the full scope of the loan portfolio been consistently and accurately reflected in the NAMA target, the residual amount to be achieved through the loan sale would have been €29 million more than was achieved.

“We have been here before with Project Eagle. We are here again with Project Nantes.

"It is remarkable that the C&AG’s look back at two NAMA loan sales has shown a disregard for competitive sales and marketing processes as well as alleged errors in securing accurate and independent asset valuations.

"This report will need to be carefully considered and acted upon.”

NAMA disputes the position that a better financial outturn could be achieved as they generated cash of €210m in total from the transaction, noting this is well in excess of both the original payment target and the revised payment target.

The Project Nantes loans were part of a bigger portfolio of loans being managed by a firm called Avestus Capital Partners.

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