What we have now is the worst possible scenario. Developers being kept alive who should otherwise have been allowed to (commercially) die. And a State Behemoth that is losing vast amounts of taxpayer money.
This Irish solution to an Irish problem lark just doesn’t cut it.

Lets not forget that NAMA is (by conscious design of its creators) the greatest soft-landing corporate welfare scheme in the history of the capitalist system. Had capitalism been left to work as it should, the developers (many of whom are on record as having conrtibuted generously to all the main political parties) would be driving taxis today. Instead they are living high on the hog courtesy of Sean Taxpayer. Its like the Twiilight Zone meets North Korea.

Like it or not, without the long knowledge of some of those who manage the larger development companies, such as Sean Mulryan, NAMA would lose even more money than they are already set to do. If you believe the Independent approximately 8% of NAMA’s debtors are paid a salary of €100,000 to manage sizable portfolios. It seems that another 15% are paid between €70,000 to €100,000. Hardly a majority. I am aware that many of the more professional developers have worked for the past four years to repay their loans without any salary whatsoever from NAMA. It is not in a true developer’s DNA to work for a salary – and virtually none of them want to be little civil servants.

The alternative for NAMA is to appoint receivers and sell the loans to the vulture capitalists for somewhere between 18 cents (as per BoI and AIB) and 30 cents in the Euro on the face value of the loans, thereby adding further losses.

However, as NWL states, the perception of salaries as outlined above is not the basis on which NAMA pays for the management of the various portfolios under its control. They do it by calculating the minimum staff and overheads required to manage any single portfolio and settle that sum as an overall payment to the company. It is ridiculous to talk of any development or property investment company in Ireland and under NAMA’s auspices having a staff of 50. I know of none that has anything remotely approaching this staffing level.

Without the incentive at the back end to the developers, there is no motivation for them to stay for the next eight years working on their portfolio to see it being sold off piecemeal. From the developer’s viewpoint, the banks have abandoned the industry and NAMA has pulled the plug by fair means and foul on as many loan agreements as it possibly can. There is no credit availability and the only buyers are vulture funds.

Until NAMA drops the ridiculous requirement that no sales can be made to their current parolees, it is destined for further and increasing losses, because in the end, the best buyers are some of the more professional local developers. BOSI in particular has grasped this fact and is the only really commercially intelligent bank running off its book at this point.. It is taking a bit longer for the penny to drop with the rest of them, but eventually it will – as there is no other option other than the circling vulture capitalists.

Great project here by an Irish born developer !
http://www.treasurychinatrust.com/shanghaithehqextension.htm

The Quinn’s were never property developers,investors yes but developers no.