The National Asset Management Agency intends to sell property loans with a face value of about €4 billion, according to informed sources.

Nama is expected to seek bids for the portfolio, known as Project Gem, towards the end of 2016. The portfolio will sell at a substantial discount to its par value, said the sources, who asked not to be identified. A spokesman for Nama declined to comment.

As Nama has at this stage sold most of the residential property on its books, it is expected that Project Gem will contain largely commercial properties based predominantly in urban areas of Ireland.

With most of the marquee properties under Nama’s control sold on at this stage, it is likely the portfolio will contain a collection of less valuable properties.

The Government set up Nama in 2009 to take on €74 billion of commercial property loans held by Ireland’s banks and to sell them over up to 10 years.

Last month it chose Oaktree Capital Group as the preferred bidder for loans with a face value of €4.7 billion, according to informed sources.

Nama held loans valued at €7.8 billion at the end of last year, compared with €13.4 billion at the end of 2014, according to its annual report. (Bloomberg)