Noonan backed original bid from Pimco to acquire Project Eagle

Minister for Finance Michael Noonan said in 2013 that there was "only one buyer" for the National Asset Management Agency's Project Eagle properties in Northern Ireland, despite stressing they would have to be sold on the open market, documents released by an inquiry into the €1.6 billion deal show.

US firm Cerberus's purchase of Nama's Project Eagle property loans in April 2014 for £1.241 billion (€1.6 billion) is at the centre of several investigations prompted by claims that politicians and businessmen were to share £6 million that was transferred from Belfast law firm Tughans, without its knowledge, to an Isle of Man bank account.

According to a document released this week, Mr Noonan told Northern Ireland First Minister, Peter Robinson and his finance colleague, Simon Hamilton, that while there could be no exclusivity "there was in his view only one potential buyer" for the properties.

Mr Noonan then pledged to discuss the situation with Nama chief executive Brendan McDonagh and said he was confident both administrations could work together with the potential buyer to overcome any difficulties.

Pimco

He made the remarks in September 2013, when US fund Pimco had already won the backing of Mr Robinson with pledges to cancel guarantees given by developers making them personally liable for their companies’ huge debts and to write off some of the £4.35 billion that they owed.

The documents, sent to a Stormont inquiry into the Project Eagle deal by Dr Malcolm McKibbin, head of the Northern Ireland civil service, show Mr Robinson's office sent a memo to Nama's head of credit and risk, Ronnie Hanna, outlining conditions that the executive believed a buyer should fulfill. They included releasing developers from their personal guarantees and that they would be allowed to continue with day-to-day management of the businesses that owed the money.

Pimco's lawyers, Brown Rudnick, had already approached Nama on its behalf and the then Northern Ireland finance minister, Sammy Wilson, had written to Mr Noonan the previous June detailing the US company's interest in buying Project Eagle.

Success fees

Pimco left the Project Eagle auction in March 2014 after telling Nama it had agreed to pay £5 million in success fees each to a former member of the agency’s Northern Ireland advisory committee,

Frank Cushnahan

, Tughans and Brown Rudnick.

Cerberus then hired Tughans and Brown Rudnick before securing the portfolio the following April. They told Nama that Mr Cushnahan was not involved at that point.