“Receivership is absolutely the last resort, and it is a decision that is never taken lightly. It is only taken after the process that Mr. McDonagh has explained, in response to Deputy Shortall, namely, an independent business review, going through portfolio management, lending, credit, risk, treasury review in NAMA, going through a credit committee and going through the board. It arises only where at the end of this process we reach the conclusion that the business is not in a position to continue trading and we come to the conclusion that we cannot put good taxpayers’ money after bad when there is no prospect of getting it back, and it would be irresponsible of us to act in any other way. However, I want to assure the committee that we are very sensitive to the consequences and it is an absolute last resort, and in the event, is based on the fact that we have to protect taxpayers’ money” NAMA Chairman, Frank Daly speaking before the Oireachtas Committee of Public Accounts on 18th November, 2010
Despite it being what NAMA calls a “last resort”, the Agency shows no sign of slowing down its enforcement activity as we get stuck into the new year. Credible sources say that NAMA summoned David Agar to its offices in Dublin last Friday 27th January, 2012 and informed him that the Agency was moving against his properties. David was reported to be one of NAMA’s biggest exposures and it is understood that David was one of the many developers co-operating with NAMA despite not having signed a full agreement with the Agency. It is understood that David believed the relationship was progressing well and is now said to be shocked by NAMA’s actions. I wonder will David regard NAMA’s move as “an absolute last resort”
David is probably most associated with Dublin-based Profile Properties which has a range of commercial and residential developments including the 60,000 sq ft Harcourt Building on Harcourt Street in central Dublin, the 110,000 sq ft Westland Park an office park in Clondalkin, west Dublin, the 600,000 sq ft mixed residential/commercial Beacon Court in Sandyford, south west Dublin and the 540,000 sq ft Kilcarbery Park commercial development also in Clondalkin, west Dublin. He is also behind Agar property.
It is not clear at this stage what property NAMA has appointed receivers to. NAMA doesn’t – in general – comment on individual receiverships. Neither Profile Properties nor Agar has commented on NAMA’s move.
Remember you can see a comprehensive list of confirmed Irish foreclosure action by NAMA here and in this regularly updated spreadsheet.
UPDATE: 4th February, 2012. Although the official state journal, Iris Oifigiuil still hasn’t published any details of a receivership relating to David Agar’s assets, it is reported in today’s Irish Independent that NAMA has appointed Aiden Murphy of Horwath Bastow Charleton to assets of three of David’s companies – Dasnoc Limited, Heratt Limited and Sammark Limited. The assets affected are understood to be development sites in Dublin and Wicklow according to the report. And although I’m sure it wasn’t intended in a humorous way, the paper says “The land has not been developed which means realising value from the sites will be “slow and difficult”, according to Mr Murphy” – you could almost add “comma, the €x hundred per hour receiver, rubbing his hands in anticipation”.
UPDATE: 5th February, 2012. The Sunday Independent carries remarks made by David Agar in the aftermath of NAMA’s foreclosure action. There’s little that’s newsworthy save the claim that David doesn’t have performance guarantees and has been working without reward for some time.
NAMA Wine Lake 
This is an interesting problem for NAMA.
Do you leave the business with a developer who at a minimum has made some mega mistakes and could very well repeat them or do you hand it over to some pigtrougher who will take no chances, make no money and charge 525 an hour?
You have to admit NWL that these are less than elegant options for NAMA.
I suspect that NAMA would prefer to stay with the developer if they play ball.
The obvious problem is the relationship between a risk adverse NAMA and risk taking developer.
Banks were supposed to be good at this and we have seen what a hash they made of it. When banks were private they were supposed to take losses not roll them over.
Every time Nana screws up it will be all over nwl.
So show Mr. Daly some sympathy , he’s at a no win poker table.
Well, Frank telling porkies! Anyone who deals with NAMA knows that NAMA appoints receivers on a whim. I have seen the process applied for a myriad of reasons from expediency to accomplishing a sweetheart deal. Always done without notice (other than the final 4 hour one) to the borrower.
Recently, NAMA’s decisions have become more bizarre by the day. I believe that those decisions result from a combination of ignorance and arrogance. If it continues like this, the Agency’s days as an autonomous entity are numbered. The politicians will shortly intervene and impose their will.
Is there any data available regarding the names of receivers appointed by NAMA; the criteria for their selection, and also the lists of auditors to the various NAMA companies.
It would also be interesting to see the auditors certificates issued for the last accounts filed prior to September 2008 for each of the NAMA companies
@Jim, the names of the receivers are not secret at all, and you’ll find details in this spreadsheet.
https://spreadsheets.google.com/ccc?key=0AlV6jFjykyK6dFJsX21NMzJZOWRxUzFhTDUyOGhxQmc&hl=en&authkey=CP2nmIUN
NAMA ran an open tender for receivers and there is a panel here
Click to access InsolvencyPanel.pdf
take a look at the tender document for the criteria.
http://www.etenders.gov.ie/search/show/search_view.aspx?ID=FEB196935
Auditors provide their assessment of the accounts in the actual accounts of companies which also declare prominently the names of the auditors. So again so secret there.
Remember auditors check the accounts give a true and fair view of the financial state of a company. Back in 2008, companies put values on their property and developments which was in line with the market. Remember a value is what someone will pay for something, and back in 2008 people were still paying huge sums in comparison with today. So the auditor will ask the directors of the company for details of how they valued the property in 2008, the directors will say they valued by reference to market values or had surveyors provide a valuation which too, will be based on market values. And that’s generally the end of it. It is not the role of an auditor to consider whether there is a general market bubble, which there was. Nor is it a valuer’s role, which surprises many people. Both are looking at what the present market price is.
Yes, I understand all that about the ‘snapshot’ picture as at the Balance Sheet date, and the valuations, but I was just wondering, generally, about how healthy or otherwise NAMA companies were at the last Balance Sheet filing prior to Sep 2008 and whether, discounting the benefit of hindsight, some of them were sailing too close to the wind, and were still being given clean bills of health
(and any auditors who might have so certified are still receiving healthy receivership commissions)
Thanks for that data
@NWL / @Paddy19
re “hand it over to some pigtrougher who will take no chances, make no money and charge 525 an hour?”
What are the NAMA rates being paid to the largely Dublin professional classes? There is anecdotal evidence that some rates are truly exhorbitant, in excess of €750 per hour. That is €6,000 per day.
Could that seriously be true? Surely a State agency would not pay that kind of money on behalf of its citizens in any period, never mind a period of austerity?
If those fees are correct then NAMA would need to seriously re consider taking the Receivership route as often as it has been doing.Of the debtors NAMA directly controls how many receivers have been appointed compared to debtors being managed locally by the Banks themselves?Would be interesting to compare and Contrast.
@Joseph, there are two types of receiver – the first is called a “share receiver” and that’s where a receiver is appointed to a company, and these are very expensive indeed in Ireland, NAMA has referred to rates of €800 + per hour. The second type is “property receiver” and this is where a receiver is appointed to an asset eg a building. Typically the second type costs €200 per hour. Still expensive and some say they’re nothing more than “glorified estate agents”.
NAMA ran an open tender for receivers and appointed a panel. I see that Allsop has partnered up with HWBC and has in that way made its way onto the NAMA panel, and it will be welcome to see that competition here – remember Allsop has turned Irish auctions upside down with its transparency and efficient operation.
@ Patrick- Catch 22; reciever charges 6 k a day(dont beleive that myself) so instead you pay the developer 3 k a day to manage the property on your behalf and the whole of the general public is onto Joe Duffy up in arms.
This has always been my biggest problem with the agency, political
cosmetics will hinder commerical decision making.
Indo had something this morning on above.
http://www.independent.ie/business/irish/nama-poised-to-take-over-part-of-agars-real-estate-empire-3007684.html
There was a post on here regarding this.
https://namawinelake.wordpress.com/2011/11/29/life-after-nama-for-developers/
@John, you’ll also find the Cyril Dennis/Orion story covered here a couple of months ago
https://namawinelake.wordpress.com/2011/12/01/nama-reported-to-be-set-to-sell-loan-portfolio-for-gbp-280m/
@NWL thanks,Cyril does not have that Morgan Stanley “look”,interesting play by Mulryan.
@NWL thanks,Agar could you man up please.You sound like a big girl.
And you the second coming,walking on water.NAMA has no use for you even free,that must be the most humbling event in an awful long time,huh,free and they don’t want you.If there is a better Fu..Yo..never heard of it.
http://m.youtube.com/index?desktop_uri=%2F&gl=US#/watch?v=ZN1f2y8wbx4
He just about insulted half the population … those in three bed semis and everyone driving a Ford. Jeez, was he born yesterday? Some people are too naive to talk to journalists. Who let him loose?
@WSTT, in fairness, it was a Ford Cortina that he referred to, which he probably meant in the sense of old jalopy. He obviously hasn’t realised that the Cortina is in fact a bit of a collector’s car these days.
Niamh is unintentionally very amusing,one my favorite hacks.Looks,like NAMA cut him lose,he sounds insufferable.
Mr Agar was the big party boy during the boom era . He is not saying anyhing about the large Car collection . The Helicopter with full time pilot plus the jet ! . not to mention the large big house collection . Go boys start outing this playboy who guzzled all the financial credit he could get . I hope nama turns the heat up on him . These are the people who wrecked out country along with Bertie and the Bnkers ……..
NWL know you are found of housekeeping,perhaps personal as opposed to performance in update,but I did like the performance reference,may be deliberate!
He definetly has been screaming from the rooftops,that there are no PG’s,really!
I see that the Irish Times is reporting that David Agar has successfully challenged Ulster Bank’s attempts to appoint a receiver to his property in Harcourt Street.
http://www.irishtimes.com/newspaper/finance/2012/0216/1224311852630.htmlH
He claims that the bank mis-sold him a swap.
Nice one, David – I am actually surprised that this is only surfacing now. But then again, let’s face it, developers as a bunch are not particularly bright or they wouldn’t be in half the trouble that they are in.
It is a sine qua non in the Conduct of Business handbook that a bank in selling a derivative to a private customer must ensure that the instrument is suitable for the client. The problem was that most banks did not do this, they just recommended purchase of the swaps to enhance their own bottom line and collect additional fees.
Assuming David (aka the Earl of Meares) has a basis for his claim, this is a case to watch with some interest. The result will have a profound affect on other banks, including NAMA, as the practice was widespread.