Nama set to make profit on money paid for €1.8bn O’Flynn loans

Nama is expected to make a profit on the sum it paid for developers O’Flynn Construction’s €1.8bn in loans in 2010, according to market sources.

“There’s a very strong international interest in the loans, with a first-stage deadline for expressions of interest in the middle of March, and they could be sold as early as a month after that. The quality of the assets, spread across Ireland, the UK and Germany has made it very appealing,” the Irish Examiner was told.

Although the O’Flynn loan book was valued at €1.8bn, Nama never revealed how much it paid to acquire it or what its “haircut” was, but it’s understood that if Nama now sells the loans for an expected €1bn-plus, it may represent a profit on what it paid four years ago.