Archive for May 3rd, 2010

NAMA : taking out the trash?

Not really, it would seem. For all the talk of NAMA buying worthless loans it seems there’s no shortage of interest in putative NAMA  assets. Yesterday’s Tribune reported that NAMA had received offers at the low end of yields of 7-8% for properties coming its way and surprisingly, offers were coming in for properties for which banks claimed there was no buyer interest. Possibly presaging the forthcoming NAMA codes of practice the Tribune reports “If and when a developer goes bust and the property is transferred to Nama, then in some cases it will invite proposals from up to five developers, asset managers or builders with a view to creating joint ventures on the properties.” It is to be hoped that property taken over by NAMA receives sufficient exposure to maximise returns to NAMA and to defend NAMA’s reputation from those who will argue that NAMA is a cronyist exercise to benefit insider elites (the Independent yesterday tells us of a fourth appointment at NAMA where the appointee has interests in concerns that NAMA will be dealing with – again that’s to be expected if NAMA is to have experienced personnel but NAMA must strive to show its Conflict of Interest procedures are rigorously adhered to).

Lastly from the Tribune, “Nama is not expected to sell off any of the assets or loans transferred to them until 2011.” This may be true but assets underpinning NAMA loans may be sold off in weeks by the developers themselves.

Elsewhere the Times reports today that property giant and arguably NAMA’s lead-valuer, CB Richard Ellis, is seeing a pickup this year from the 2009-doldrums of Irish commercial property. Whilst not predicting a return to the heady days of the boom, the company is seeing selective upturns in particular sectors. They might want to abandon the “a corner has been turned” phraseology though in favour of less tarnished language.

There’s no suggestion that NAMA will pick up the crown jewels in property but it does seem at least it’s not trash.


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