Nama has selected Cerberus Capital Management as preferred bidder for a portfolio of property loans with a face value of about €3 billion, a source said.

The US private equity firm will enter exclusive talks to buy the portfolio known as Project Gem, which will likely sell at a substantial discount to its par value, said the source. Nama and Cerberus both declined to comment.

Oaktree Capital Group and Goldman Sachs were also among bidders for the portfolio, the source said.

Cerberus has bought a number of loans from Nama, including the controversial Project Eagle portfolio in the North. That deal is under scrutiny at the Public Accounts Committee.