Yes, it’s acronym Friday! You might recall that this time last year, NAMA announced that it was setting up so-called Qualifying Investor Funds (or “QIFs”) which are property funds where investors with more than €100,000 to spare can invest in the fund, to which NAMA will sell property. In summary, it’s a means for NAMA to sell its property to syndicates of investors. NAMA even tendered for administrators and managers of the QIFs and committed to launching at least one QIF in 2012. Things seemed to drag in 2012 and it was not until November 2012, that NAMA appointed a QIF manager, Mercer Global Investments Europe – related to the crowd doing the expert report on bank pay and perks for Minister for Finance, Michael Noonan right now, and also part of Marsh and McLellan.
And then in December 2012, Minister Noonan at last announced Real Estate Investment Trusts (or “REITs”) – which are similar to QIFs but have a few differences, they were promised in the Fine Gael General Election manifesto in 2011, but despite several chaser questions from the Opposition in the past two years, it wasn’t until December 2012 that the Minister announced them and they will now be imminently introduced in the forthcoming Finance Bill 2013.
However, it now appears that NAMA is considering the future of QIFs after the announcement of REITs and the Agency may well decide to abandon the QIFs altogether.
What does all of this mean? REITs will be more transparent and will be quoted on the Irish Stock Exchange it seems. They will also be available to smaller investors, so if you fancy a punt on Irish property, you will be able to satisfy that weakness with hundreds of euro. Your stake in a REIT is akin to a share in a company and can be bought and sold at a market price, which with any luck will be liquid – contrast with trying to sell a house in a day! QIFs are less transparent, have a minimum investment of €100,000 and as far as I can see, were only considered by NAMA because of the foot-dragging in introducing REITs.
Here are the full parliamentary questions from Sinn Fein’s jobs, enterprise and innovation and justice, equality and defence spokespersons Peadar Tóibín and Deputy Pádraig Mac Lochlainn.
Deputy Peadar Tóibín: To ask the Minister for Finance further to his announcement of introducing legislation to give effect to Real Estate Investment Trusts, if he has consulted with the National Asset Management Agency with respect to its planned launch of Qualified Investor Funds; and if NAMA remains committed to launching QIFs in view of his announcement with respect to REITs..
Minister for Finance, Michael Noonan: I am advised by NAMA that it is very supportive of the Government’s decision to introduce REITs legislation. Officials in my Department have been in regular contact with the Agency in relation to the introduction of QIF’s and I am advised that the Board of NAMA is currently considering its approach in light of the forthcoming REITs legislation.
Deputy Pádraig Mac Lochlainn: To ask the Minister for Finance further to his announcement of introducing legislation to give effect to Real Estate Investment Trusts, if he will outline how REITs will be regulated here; the persons will be responsible for regulation and the competencies and qualifications needed for appropriate regulation of REITs..
Minister for Finance, Michael Noonan: The details of the legislation which will provide for Real Estate Investment Trust (REIT) status for qualifying public limited companies will be published in Finance Bill 2013.
An Irish REIT will be subject to relevant provisions of the Companies Acts, and will be required to comply with the requirements of various European Directives including the Prospectus Directive, Transparency Directive, Market Abuse Directive and the Markets in Financial Instruments Directive (MiFID).
NAMA Wine Lake 
Some slides and a suggestion that Ireland becomes a REIT “hub” hasn’t a clue the poor chap…..
Click to access JMpresentation.pdf
Checked the NAMA site perhaps they will release after a FOI..oh that won’t work..the musings of their extremely well remunerated expert.At least the DofF puts it up there to read.
Here’s the info on the above “gig” if the Irish Times publishes another piece by the most boring man in the world I’m canceling my subscription ….is this really the best use of Mulchacy’s time really!
http://www.epra.com/events/irish-reits-conference/
@John, perhaps it was a good time for John to catch up with former NAMA employee, Kev and ask how Nowlan junior’s deposing in the Dunnes case in the US was going…
Oh look they even have a web site….here are all the other presentations except Mulchay’s…
http://www.irishreits.ie/conference-presentations.html
“This event is organised by the REITs Forum – a voluntary group of industry participants Chairman Bill Nowlan (ex-President of European Society of Surveyors). The panel discussion on the situation surrounding new REIT structures in Ireland will include Irish Stock Exchange, tax advisor (KPMG), lawyers, stockbrokers (NCB – subsidiary of Investec). CEO of Kennedy Wilson Ireland.”
This is an absolute fu**ing disgrace that JM would fraternize at these events,did he amuse his rapt audience with some jovial tales…wing it with a few one liners..come on NAMA more was expected.
Wheres his speech then ….
@John, the transcript of John Mulcahy’s speech has been requested from NAMA. Will probably be worth a blogpost if it is provided.
@NWL its confirmed Ireland’s RE oracle ‘spoke’ in a hushed tone at this ‘insiders’, NCB sponsored event for 45 minutes…its ‘rumored’ slides were involved too…
I was reliably told that he issued a mea culpa for advising NAMA to overpay for its ahem ‘assets’ and took full responsibility as is common in Ireland :)
As he is rapidly approaching or may have passed the mandatory retirement age for most large organisations..whats NAMA’s succession planning or is JM intending hanging around into his late 70’s.Given his millions and millions of JLW stock,why is he still hanging around,its not ‘ageism’ simple fact performance declines with age…. why you think Viagra was invented….NAMA should release his paper today,it was on the taxpayers time,prepared by NAMA staff and presented in a public forum.
NAMA overpaid for its loans,JM was one the principal advisers its going to ‘lose’ another 10 BILLION.Why is no one ever held responsible for an epic fail like this in Ireland.
@John, seems there is no transcript of what John Mulcahy said at the conference. He didn’t speak from a script, if you were unkind, you might say he winged it, but at this stage of his career, John Mulcahy could probably wing more expertly than most carefully prepared scripts.
JM seems to be one of the untouchables. He was around a lot in my previous job; saw him operate. Now on a pedestal again..nope I don’t get it either.
Here is his area of ‘expertise’….interesting topic one wonders what he had to say ..
“NAMA and the role of REITS”,JM had the floor for almost an hour..did he then actively participate in the q and a session with Peter Collins,MD of Kennedy Wilson Europe ?
http://www.irishreits.ie/agenda.html
Given the history of backroom dealings in Ireland,is it appropriate that the most senior NAMA RE chap attends these events ‘speaks’, yet their in NO record of what he actually said…. bizarre almost comical if the taxpayers was not paying for his big day out w/o notes.With the advances in technology and the very deep pocketed influential cast sponsoring this event,they should provide a live feed…no recording of this at all ?
Checked their website no list of attendees or info on how much it cost,does not appear ‘open’ was it by invite only…..what a strange waste of a day by John Mulchacy.
@John, yes it was by invitation only
“Bill Nowlan of WK Nowlan Property Asset Managers is chairman of the REITS Forum which is holding a conference next week (by invitation only)”
http://www.irishtimes.com/newspaper/commercialproperty/2013/0116/1224328897439.html