NAMA firesale could depress prices

FINANCE Minister Sammy Wilson has warned a firesale of the £3.35b worth of Northern Ireland land - including a £3m tract in Drumahoe - owned by the Republic’s National Asset Managment Agency (NAMA) could depress prices in the local property market, a source of major concern, he said.
By The Newsroom
Published 26th Dec 2011, 09:49 BST

He made the comments when asked in the Assembly for his assessment of the influence of NAMA’s property portfolio on the Northern Ireland property market.

Earlier this year the Sentinel reported how NAMA had taken over 36.2 acres of land on the Glenshane Road once owned by McDaid Developments (Ireland) which Mr Wilson, in a former life as Environment Minister, had once hailed as a key component of a 770 dwelling joint housing development in the village.

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Whilst stating that the establishing NAMA was “a necessary step to restore liquidity and confidence in the Irish financial system, including those Irish owned banks that operate in Northern Ireland” he said the disposal of its £3.35b total loan portfolio here “could have a significant impact on our property market.”

“On that basis, I have sought and received repeated assurances from the Irish Government and NAMA that there would be no firesale of Northern Ireland assets. We have been told that while NAMA has taken control of loans and assets from some major local property/development companies, these will be carefully managed,” stated Mr Wilson.

“Nevertheless, we must realise that the release of NAMA properties to the market could exacerbate the imbalance in supply and demand that currently exists in the Northern Ireland property market and could depress prices. Clearly this is a major concern,” he added.

Notwithstanding this he said heavily discounted prices could provide a small stimulus to the housing market in a few niche areas.

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“Furthermore, I also anticipate that specialist funds and institutional investors will become increasingly important in a context of constrained bank funding and if NAMA disposals are targeted at these potential purchasers, it may also stimulate more interest in Northern Ireland as a region for such investment.

“Clearly the work of NAMA is going to have a significant impact in Northern Ireland for some years to come and I can assure you that I will monitor this situation very closely and will continue to liaise with the Authority and the Irish Government to ensure that Northern Ireland interests are protected as much as is possible,” he commented.

Related topics:Sammy WilsonNorthern IrelandGovernment