The National Asset Management Agency has agreed a joint venture deal with US private investment firm Starwood Capital for a portfolio of loans known as Project Aspen.
Under the terms of the deal, NAMA will sell the loan portfolio, which had a face value of over €800m, to the new joint venture entity.
It is believed the portfolio was sold for €200m.
This joint venture will be 20% owned by NAMA and 80% owned by a consortium led by Starwood. Other members of the consortium include Key Capital Real Estate and Catalyst Capital.
NAMA and Starwood entered into exclusive talks on the deal in early April.
This is thought to be the biggest such deal agreed by NAMA in Ireland since the agency was formed, although it has conducted similar transactions in the UK.
NAMA said that the the structured sale enables it to ''capitalise on the current robust interest from global investors in Irish commercial property assets''.
It will also enable the agency to take part in the continuing recovery of the Irish commercial property market.
Starwood is a global investment firm with a core focus on global property, and currently has over $23 billion in assets under management.
"NAMA is very happy with the successful outcome of the loan sale process and we welcome Starwood to partner with us in resolving the portfolio. The transaction has a number of innovative features, including NAMA vendor financing and equity participation,'' commented NAMA's chief executive Brendan McDonagh.
The portfolio includes the Garda offices at Harcourt Street in Dublin city centre, three Superquinn stores in Ranelagh, Rathgar and Lucan in Dublin and one in Waterford.
It also includes an interest in the Dawson Street building used by stockbroker Davy in Dublin city, and sites in the IFSC and Carrickmines Retail Park.