200m euros heldby NAMA in NW

Properties currently listed as being under enforcement action include the beautiful Swillyview plot at Carrownamaddy, Burt, lying just below Grianán of Aileach, and other developments at Ard Bán, Muff, and Ballyhaskey, Newtoncunningham.

NAMA last week provided further details of its portfolio in Northern Ireland by way of the publication of its annual report

According to the report developers acquired 200million euros worth of over-priced property they couldn’t afford in Counties Londonderry and Donegal using cheap credit from the banks during a false cross-border property boom on both sides of the border.

Whilst there are no longer any NAMA properties under enforcement within the Londonderry city limits there are four in the County and a number just across the border.

And, of course, last year NAMA did take over 36.2 acres of land on the Glenshane Road in Drumahoe which had once been owned by McDaid Developments (Ireland) and which former Environment Minister Sammy Wilson, once hailed as a key component of a 770 dwelling joint housing development in the village.

According to NAMA 100million euros worth of property is held in both Londonderry and Donegal - giving a total of 200m euros worth of assets acquired through loans that went bad in both counties.

In Northern Ireland a significant proportion of NAMA’s property is in County Antrim. Forty-six per cent of Northern Ireland property securing NAMA loans is also located in Belfast.

But after Antrim (700m euros) and Down (300m euros), County Londonderry has the third highest valuation of NAMA property at 100million euros.

However, the report notes that the valuations are based on November 2009 values. It is likely the value of NAMA’s portfolio has fallen even further since then.

South of the border a breakdown outside Dublin and Cork shows a significant concentration of properties and loans in counties adjacent to Dublin but nonetheless County Donegal accounts for 100million euros worth.

The total market value of property securing NAMA acquiring loans in total is 32.4bn euros. In ROI it is 17.5bn euros (54 per cent). In Britain is 10.9bn euros (34 per cent).

In Northern Ireland it is 1.3bn euros (4 per cent) and elsewhere it is 2.7bn euros (8 per cent).

In terms of asset type in Northern Ireland NAMA’s property portfolio comprises 22 per cent land; 5 per cent development; 17 per cent retail; 17 per cent office; 27 per cent other investments; 10 per cent residential and 3 per cent hotels.

Chairman of the NAMA board Frank Daly is also the chair of its Northern Ireland Advisory Committee which advises the Board in relation to strategy for its Northern Ireland assets. NIAC met five times last year and liaises with the Northern Ireland Executive.

According to Mr Daly the majority of loans in the Northern Ireland portfolio were assessed through a Debtor Business Plan process by the end of last year.

This was designed “to bring clarity and certainty to the management of the underlying assets, including where NAMA had to reluctantly enforce on a small number of cases.”

He explained the eventual size of the Northern Ireland portfolio was smaller than NAMA had originally predicted.

This was due to on-going asset disposals, loan repayments and Board decisions not to acquire certain loans.

Mr Daly said NAMA was engaging through NIAC with local Chambers of Commerce, the Northern Ireland Assembly and other organisations.

“Recognising the wider contribution NAMA can make to working for solutions in Northern Ireland, the Committee is also leveraging partnership across the public and social sectors, including the Northern Ireland Housing Executive,” he explained.

“A further example of this is the collaboration with the University of Ulster on research initiatives to support better understanding of the supply and demand dynamics of land across the region, as well as housing affordability and barriers to entry to the housing market.

“The Committee continues to review all opportunities to bring creative and innovative solutions in respect of NAMA’s portfolio in the expectation that this will also deliver benefits to the communities across Northern Ireland.

“NAMA’s mandate is to maximise recovery from all loans irrespective of the jurisdiction of the underlying property. Towards this objective, NAMA adopts a commercial approach in each of the jurisdictions in which it operates while recognising the distinctive differentials applying in each area. “It is particularly cognisant of the challenges specific to Northern Ireland and the Northern Ireland Advisory Committee’s approach in providing advice to the NAMA Board is informed by extensive engagement, local insights and expertise.

“NAMA carries out its work in line with a set of guiding principles, including taking a longerterm approach and avoiding fire sales and the record to date in Northern Ireland continues to demonstrate this approach,” he added.