NAMA has now published its pre-Christmas update. The highlights –
(1) NAMA claims to have convinced developers (three according to Laura Noonan in today’s Independent – that would be 3 out of 850 by the way) to reverse the transfer of €130m of property which will be used for future development. Who valued the transfers at €130m? When will the transfers be reversed? As commenter JR below asks, why will this property not be used to offset loans due and why is it being risked on future development spending by NAMA.
(2) €1.6 billion in assets held by Nama developers has been approved for sale under NAMA’s auspices since March 2010 with proceeds being used to repay NAMA and non-NAMA loans. I’d guess that the €1.6bn includes Derek Quinlan’s €200m-odd car park on South Audley Street, the sale of which seems to have stalled though is likely to be continued in the New Year.
(3) 11,000 loans held by 850 developers with a nominal value of €71.2 billion have been acquired. There are likely to be another 10,000 smaller loans worth another ~€18bn.
(4) NAMA has issued bonds with a total value of €30.2 billion and applied an average 58% haircut. With the smaller exposures remaining to be acquired and with betting that they will attract deeper discounts, I would guess the final haircut will be in the 60-65% range.
(5) The agency has now concluded its review of the business plans of the top 30 developers the statement said. Information reaching here suggests that not one single agreement has been signed by both NAMA and the developer.
(6) NAMA has individually valued and conducted due diligence on 43% of the €71.2bn par-value loans acquired (NAMA say the 43% relates to acquisition value which is €30bn approx) AND that the 43% has been approved by the EU. Well done to NAMA on that. In addition NAMA has undertaken the same detailed work with a further 17% of loans though the EU has not yet approved these valuations. That leaves 40% which has been acquired at estimated valuations that will need be validated in Q1, 2011. Plus NAMA needs acquire a further €18bn of smaller exposures. I’d guess that the transfers will be completed with granular valuations in Q3, 2011.
Keywords: Christmas message 2010 Frank Daly