I propose to take Questions Nos. 182 and 183 together.
As the Deputy is aware, for operational reasons the loan assets of Irish Bank Resolution Corporation Limited (in Special Liquidation) (IBRC) were originally divided into six portfolios: Evergreen, Sand, Rock, Salt, Stone & Pebble.
The Sand portfolio comprised 12,702 Irish originated residential mortgages with a par value of €1.8bn, most of which had transferred from Irish Nationwide Building Society. In the first sales process, 64% of the Sand portfolio was sold to two buyers, namely Lone Star and Oaktree Capital Management, L.P.
Following instructions from the Minister for Finance, NAMA were no longer obliged to purchase the unsold IBRC assets at their individual valuation as previously envisaged, as the expected proceeds to be raised from the sale of the IBRC loan assets were to be sufficient to fully repay the IBRC debt to NAMA.
As a result, the Special Liquidators devised a further sales process in respect of the unsold residential mortgages (Project Pearl) so as to maximise the return to all remaining creditors of IBRC, including the State. Having given due consideration to the representations made by residential mortgage holders of IBRC and the professional advice received, the Special Liquidators divided the remaining residential mortgages into two tranches (Pearl Tranche 1 and Pearl Tranche 2). These two tranches were sold to The Governor and Company of the Bank of Ireland, Mars Capital No. 3 Limited and Mars Capital No. 4 Limited.
I am advised by the Special Liquidators that principal dwelling mortgages accounted for 83% of the IBRC mortgages sold in the Special Liquidation while buy to let mortgages accounted for 17% of the IBRC mortgages sold in the Special Liquidation.