Thousands of jobs in Teeside in northern England, that is. It is reported that a NAMA property formerly owned by developer John Gallagher is subject to a planning application which if successful next week, will lead to the building of 845 homes, a care home, crèche and “community facilities” as well as shops. There will also be development of roads serving the former Ministry of Defence site in Eaglescliff in Teeside and all told it is expected the project will create 3,000 jobs, The investment to develop the project is put at GBP 350m (€430m). NAMA was asked two days ago if it will be putting that investment into the scheme but there has not yet been any response.
In February this year, it was revealed that less than 40% of NAMA’s advances to developers was for construction and maintenance work in the Republic of Ireland despite 57% of NAMA’s assets – by reference to NAMA acquisition value, by reference to original value it’s higher and close to 65% – being located here.
On Wednesday this week Minister for Finance, Michael Noonan told Sinn Fein’s finance spokesperson that NAMA presently has €1.54bn of cash on hand which will balloon to €4.6bn as soon as Bank of Ireland’s shareholders agree to loan the Government €3.06bn which was temporarily borrowed from NAMA in March. So NAMA has the financial wherewithal to invest substantial sums in projects and it may well be that the Agency foots 100% of the investment in Teeside.
With a 14.3% unemployment rate in Ireland and 302,000 unemployed and a total of 430,000 on the Live Register, you might have thought that the powers that be could entice NAMA to invest more of its cash mountain domestically.
UPDATE: 4th May, 2012. RTE is reporting that NAMA is funding a €13m development at the Charlestown Shopping Centre near Finglas in north Dublin which will generate 250 new construction jobs and when the development is finished with give rise to 250 retail-related jobs. The development is owned by the Bailey brothers, Tom and Mick but the developer is said by RTE to be G&T Crampton, a company unrelated to the Baileys.
UPDATE: 18th May, 2012. RTE is reporting that it is “understood” that NAMA is lending €10m to the receivers appointed to Landmark Enterprises so as to complete an 80-apartment block in the Beacon South Quarter, the mixed use development developed by Paddy Shovlin, Tony and Patrick Fitzpatrick’s Landmark. Last year, NAMA sold 58 completed apartments in the development in the Sandyford, south Dublin development to the Cluaid housing association.
UPDATE: 31st May, 2012. ‘Property Week’ reports that planning consent has been granted for the NAMA development at Allens West in Tees Valley, Teeside, northern England.