When NAMA is asked about its plans, and particularly when it is asked for specific financial targets, the Agency or its political mouthpiece, the Minister for Finance Michael Noonan tends to stonewall and even cite commercial confidentiality for top-level plans.
Thankfully, we have the IMF involved in running the country, and we learn from its latest staff review report published this week that NAMA is expecting €0.6-0.9m of sales in 2013-4 ON TOP OF the €2bn of vendor or staple finance funding it is making available.
“NAMA will also make €2 billion of vendor financing available, which is expected to attract new investor equity in the order of €0.6-0.9 billion in 2013–14.”
It has been confirmed that the “investor equity” means independent finance that buyers bring to the table when buying NAMA assets.
We can’t be certain that all of these sales will be in Ireland, but it is in (the Republic of) Ireland where there is the greatest dearth of available finance.
What this tends to suggest is that we will finally see the brakes taken off NAMA’s disposal activity in Ireland, and that commercial property in particular, of which NAMA has about €6-7bn under management still, will finally be unleashed on the market.
NAMA has said in the past that its staple finance would be confined to better quality assets with decent tenancy arrangements, but the betting now is that more secondary assets will be offered with NAMA’s financing, which remember is available to NAMA at the ultra-cheap 0.75% rate per annum it needs pay on its NAMA bonds. Bank of Scotland and Ulster Bank have been early movers as regards disposals of Irish property, but at last it seems we are on the brink of seeing significant planned disposals at NAMA.