Home Knowledge NAMA News – June 2012

NAMA News - June 2012

June 7, 2012

NAMA to Invest €2 Billion in Ireland
The recent announcement by NAMA that it is to invest up to €2 billion in Ireland by 2016 to finish existing developments and to carry out viable projects to meet anticipated future demand signals a cautious optimism from the agency in the recovery of certain segments of the Irish property market. In a recent address to an accountancy body, NAMA Chairman Frank Daly stated that there were “more and more indications that the economy, and with it some important segments of the Irish property market, has turned the corner”.  Mr Daly noted that in some sectors, such as, large office space, there were indications that over the next couple of years there would be a shortage of supply and the agency planned to address this now through investment in viable projects. The investment funds will come from cash reserves not borrowings and it is reported that the investment could lead to the creation of up to 25,000 construction jobs.

Mr Daly also stated that, following a strategic review, the agency expects to achieve its objective of repaying its debts in full by 2020. 

In related news it is reported that NAMA has lent €10 million to complete a mixed commercial and residential development at the Beacon South Quarter in Sandyford, South Dublin. It is understood that a change of use planning application to remove office and other space, increase height and add further apartment space has been lodged by the receiver.  

NAMA Challenged
One of NAMA’s largest borrowers, Treasury Holdings, has commenced High Court proceedings in a further challenge to the agency’s right to enforce its security and appoint receivers. Following a successful application by Treasury in March for leave to seek judicial review of NAMA’s actions, it is reported that it is now contesting the constitutionality of NAMA’s activities and seeking substantial damages arising from a decision to appoint joint receivers to certain of Treasury’s assets, including Battersea Power Station in London. It is believed that Treasury is claiming damages for losses incurred as a result of the administration including loss of earnings of over £400 million in management fees.