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Archive for August 31st, 2011

(Click to enlarge – extract of new property added in the second edition of NAMA’s Enforcement List published today)

Sooner than expected, NAMA has this afternoon published its second so-called “Enforcement List” – real estate properties subject to NAMA loans to which receivers have been appointed. The list is available as a non-searchable PDF here – hopefully a more manipulable format will be available here later today. I have extracted here the new property added in the second edition. The list is supposed to be accurate as at 31st July, 2011. (UPDATE: 31st August, 2011. It seems that the new property added – approximately 40 in total – mostly represents Sean Dunne’s, Paddy Kelly’s  and the Grehan brothers’ assets)

In summary there are 887 properties on the list, up from 857 last month. The list is supposed to encompass all NAMA foreclosed property, inIreland,Northern Ireland,Great Britainand the rest of world. Remember that is just includes real estate property – you won’t find planes, helicopters, speedboats, cars, art, wine, investment portfolios here.

The list is of intense interest as many of properties are likely to be for sale, though you should note the caveat in the introduction to the list that some properties may not be for sale. NAMA publishes on its website a list of terms and conditions that accompany the Enforcement List.

In the first instance, queries or expressions of interest should be forwarded to the receivers whose website addresses are shown alongside the relevant property. If you think there are errors on the list then you should contact NAMA by sending a message to properties@nama.ie

NAMA published the first edition of the Enforcement List on 28th July, 2011 and there is an entry here which examined that list.

Some frequently asked questions about the list

Q. NAMA has said it has 83 hotels inIreland in its portfolio, why are there so few hotels on this list

A. This list only contains real estate property subject to NAMA loans, to which receivers have been appointed. Most hotels subject to NAMA loans inIreland continue to be operated by the original developers/borrowers.

Q. Why is the list so short. Is this all the property assets in NAMA?

A. NAMA has said that its loans encompass over 16,000 properties so this list represents a small fraction of that total. Most property remains in the hands of the original developer.

Q. I contacted the receivers and they say the property is not for sale.

A.  I understand most of the property on the list is for sale, but the role of the receiver is to maximise the return to NAMA, so some property may potentially be developed, rented, managed, mothballed or even demolished.

Q. I contacted the receivers and there has not been any response, or they referred me to an estate agent that has not responded to my enquiries?

A. NAMA is interested in monitoring the performance of its receivers and their agents, but remember this list generates a lot of interest – the first edition was downloaded over 10,000 times from the NAMA website, and over 5.400 times from the NAMAwinelake blog. So receivers and agents are likely to be burdened with spikes in enquiries. Ultimately if you are not getting satisfaction from the receiver, then NAMA may be interested in hearing from you.

Q. Is this all the property associated with NAMA that is for sale?

A. No, developers who still own property subject to NAMA loans may also sell their own property directly – under NAMA’s auspices of course. There is no comprehensive public list of this property.

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You really have to hand it to institutions in this country. Last week RTE unmasked what it claimed was a Garda informant – it gave his name, his age and his address. And yesterday RTE reported that a prisoner had absconded from the Mid-Western Regional hospital. Did RTE bother to reveal the prisoner’s name, description or photograph? Of course not, why would the national broadcaster want to do something as helpful as that. It reminds me of the comedy sketch where someone being interviewed who wants to have their identity protected, and should therefore have their face pixilated, ends up being presented with the face perfectly visible and identifiable and the background pixilated.

And this morning the Central Bank of Ireland (CBI) released its monthly statistics for banks operating in Ireland. Not only that but the CBI also produces a veritable cornucopia of information on deposits and loans. Twenty spreadsheets – count them here – with myriad numbers. But the one number we all want – the value of deposits by Irish households and normal Irish businesses in Irish state-guaranteed banks – well, those numbers, almost only possible numbers, the CBI doesn’t produce. The reason we want those numbers is that it will indicate if ordinary households and businesses have yet regained confidence in Irish banks, and that confidence will be needed if we are to rebuild a sustainable banking sector. You really do have to hand it to CBI.

In terms of what the numbers released this morning do reveal, private sector deposits in the State –guaranteed banks fell by €973m during the month of July from €103.5bn in June to end up at €102.6bn in July, and that represents a €25.3bn decline from a year ago, July 2010. So the decline is continuing but at a slower pace than previously.

Two other points of note: Firstly, deposits overall in the State-covered banks fell by €18bn in July 2011, but that was mostly attributable to the Government transferring bailout funds which had been previously received from our IMF/EU chums out of deposit accounts and used to recapitalize the banks. Secondly deposits in the State-guaranteed banks from non-Irish residents rose for the first time in over a year – by €1bn in total to €71bn.

Plainly in August 2011, the perceived risk of sovereign default byIrelandreceded in the mind of the bond market with the decline in 10 year yields from the 14%  peak in July to 8.6% today. Might we see more non-Irish deposits returning in August? And might that be a precursor to growing domestic confidence?

The CBI and ECB continue to provide substitute funding for Irish banks which replaces the flight of deposits and Irish banks continue to provide extensive State-backed guarantees on deposits.

So, looking at the deposit figures produced by the CBI. First up is the consolidated picture for all banks operating in Ireland including those based in the IFSC which do not service the domestic economy.

Next up are the 20 banks which do service the domestic economy and include local subsidiaries of foreign banks like Danske, KBC and Rabobank. There is a list of all banks operating in Ireland here together with a note of the 20 that service the domestic economy.

And lastly the six State-guaranteed financial institutions (AIB, Anglo, Bank of Ireland, EBS, Irish Life and Permanent and INBS – Anglo and INBS have now been merged to form the Irish Banking Resolution Corporation, IBRC)

(1) Monetary Financial Institutions (MFIs) refers to credit institutions, as defined in Community Law, money market funds, and other resident financial institutions whose business is to receive deposits and/or close substitutes for deposits from entities other than MFIs, and, for their own account (at least in economic terms), to grant credits and/or to make investments in securities. Since January 2009, credit institutions include Credit Unions as regulated by the Registrar of Credit Unions. Under ESA 95, the Eurosystem (including the Central Bank of Ireland) and other non-euro area national central banks are included in the MFI institutional sector. In the tables presented here, however, central banks are not included in the loans and deposits series with respect to MFI counterparties.

(2) NR Euro are Non-Resident European depositors

(3) NR Row are Non-Resident Rest of World depositors (ie outside Europe)

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We might have to wait for another next week to ten days before NAMA issues its second edition of its famous “enforcement list” – properties to which it has appointed receivers and which are potentially up for sale. Of course the list is only of property to which NAMA has appointed receivers, and there will be additional property under NAMA’s control which may be sold directly by the developers themselves. Without citing sources, a London freesheet and online news portal, City AM claims that two major properties are to come onto the market “next month”, which I guess starts from tomorrow. Neither property is apparently shown on NAMA’s first enforcement list.

The two properties which the newspaper claims will come on the market will be 107 Cheapside in the City of London (pictured here in the project brochure), a 183,000 sq ft office/retail development owned by Menolly, Seamus Ross’s company – CB Richard Ellis are shown as the agents for the development; and Senator House at 85 Queen Victoria Street also in the City of London (pictured here), 100,000 sq ft office development owned by Avestus, with which Derek Quinlan was associated – Drivers Jonas Deloitte was a letting agent for the development. The location of both properties is shown on the map below – click to enlarge.

City AM says that Senator House might fetch GBP 77m (€87m). The reporting at City AM then breaks down – it is not clear if there is a third unidentified property for sale but the article does refer to a “GBP 65m residential tower in Hoxton”, which was reported here yesterday (and which was first reported by Britain’s Estates Gazette last week – not available online without subscription). The City AM article does say that overall the property for sale might be worth GBP 250m but it is unclear if that is for four properties including the “Hoxton” residential tower, and if there is a third unidentified building.

It is however clear that NAMA is active in the London market, but there is a lack of transparency with what is available for sale (the enforcement list is but a subset of NAMA’s assets, though the remainder are loans which have not yet been foreclosed). There has been speculation that receiver sales in the UK, particularly London, may not have resulted in optimum prices. Given the wealth of information available in the UK, sooner or later that speculation will be tested.

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