NAMA demonstrates its “manage” strategy in English development

NAMA has made it clear that with each property asset under its control, it will pursue one of six options

(1) Develop

(2) Manage

(3) Sell

(4) Demolish

(5) Mothball

(6) Lease

And in what Property Week is calling a UK “first”, NAMA is reportedly contracting Manse, a company which deals with distressed property and planning issues,  and developer/businessman Chris Musgrave, both to deal with a NAMAed property, the Allens West Logistics Centre in Tees Valley, north east England. The property was owned by developer, John Gallagher and was secured on a loan from Anglo. Begbies Traynor was appointed as administrator last August 2010.

Apparently the aim is to continue to generate rental income from the site which has some 500,000 sq ft of industrial space, of which quite a bit is presently vacant and to enhance the planning permissions for the site and then sell it. The site apparently already has consent for 500 homes and 200,000 sq ft of industrial but has section 106 restrictions (often the requirement for developers to contribute to local schemes).

So in essence, the site has been taken from John Gallagher and control given to Manse and Chris Musgrave, to manage and enhance.

NAMA has not commented on the report or the arrangements with Manse or Chris Musgrave.

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