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Archive for February 16th, 2011

A common misconception about NAMA is that it owns property and that the “assets” under “management” are real properties. That’s not the case, at least not at present. NAMA is managing loans, albeit secured on property. The sales that you are beginning to hear about (and I see the Irish Times has caught up this morning with the imminent sale of the Montevetro Building in central Dublin reported on here last month) are actually executed by the developers, though under NAMA’s watchful eye. However this is set to change with NAMA now evidently taking widespread enforcement action against developers. Enforcement involves NAMA seeking judgments against developers, appointing receivers (Ireland)/administrators (UK) or placing the developer in liquidation. There also seems to have been a ramp-up of enforcement action by NAMA banks against developers, particularly in the North where the BBC keeps good track of these actions. These developers may be the objectors written about on here recently and remember NAMA has effective control of NAMA-eligible loans even before they are acquired by the agency, that is, NAMA can direct the banks to act on loans that are NAMA-bound.

There is maintained on here a spreadsheet which aims to track NAMA enforcement actions. For Ireland, it depends on Iris Oifiguil and court records which are not always up to date, so press reporting (which is also patchy) is used to supplement the data from the official record.

The latest additions to NAMA’s list of enforcement action are Liam Carroll companies reported in today’s Irish Independent and from the Iris Oifiguil, a lesser known developer, Greenband Investments whose land at Westbury in Corbally, Co Clare is now controlled by a NAMA-appointed receiver, Gearoid Costelloe of Grant Thornton. Greenband might be best known for the development of the Showgrounds Shopping Centre in Clonmel. Its directors are Paul O’Brien and Mary Moran.

The Liam Carroll receivership is likely to bring a considerable number of apartments to the market in and around Dublin. Some are likely to be sold but I would have said that the majority will enter the rental market as suggested by NAMA’s Head of Lending, Graham Emmet last September 2010.

So although NAMA is at present a manager of loans, it seems that it has gotten stuck into enforcement actions which will see the agency more directly in charge of the property and indeed in the not-too-distant future, NAMA will start to own property in its own right. And slowly but surely, property will start to make its way onto the market.

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