NAMA repays €250m of bonds and recovers acquisition price and working capital through sale of Montevetro building

NAMA is pleased to announce three significant developments as it approaches the first anniversary of achieving EU approval.

Repayment by NAMA of €250 million of Senior Securities (NAMA Bonds)

The Board of NAMA has agreed that the Agency will repay €250m of Senior Securities [also known as NAMA Bonds] in the coming weeks. This is the first such repayment of these bonds made by NAMA which has to date issued €28.575 billion of senior securities as consideration to the participating institutions. The payment is being made ahead of schedule.

NAMA Chairman Frank Daly said the fact that the Agency can begin this process barely a year after it was approved “demonstrates the effectiveness of the NAMA business model and reflects its current strong cash position; this is a significant milestone for the Agency and for the participating institutions.”

Repayment to Minister of €49m loan to NAMA

The Board of NAMA has also authorised the repayment of €49 million to the Minister for Finance. The money was advanced to the Agency in March 2010 as a loan by the Minister for Finance and was used to inject ordinary equity into the special purpose vehicle, National Asset Management Agency Investment Limited. This repayment is also ahead of schedule.

Recovery of acquisition price plus working capital advanced through sale of Montevetro by Real Estate Opportunities plc to Google

Noting the announcement earlier today by Google of its purchase of the 15 storey Montevetro development on Barrow Street in Dublin, NAMA confirms that it has recovered in excess of the combined amount of [1] the monies it paid to acquire the REO plc loan which was secured by the Montevetro development and [2] the additional funding advanced to REO plc in the form of development working capital to enable it to complete this landmark building so that it could be sold on the market.

Working with CIE, the State’s transport holding company, and REO, NAMA provided extensive resources, including working capital and expertise, to ensure the development was completed on time and to a high specification.

Frank Daly, Chairman of NAMA said; “the successful completion of the Montevetro development and its sale again reflect the positive potential of NAMA to support the commercial property market in Ireland without compromising its objective of recovering monies owed to the taxpayer. NAMA played an intrinsic part in brokering the deal between purchaser and seller and in putting this deal together. It is an excellent example of NAMA’s ability to enhance the value of its assets for the benefit of taxpayers.

“I believe the sale of a building of the size of 210,000 sq feet will be seen as a very positive sign for the future of the Irish Commercial property market. I also believe that having such an internationally renowned purchaser demonstrates continuing confidence in Ireland and particularly in our attractiveness to major global businesses.”

Daly continued; “Today’s news caps a number of significant achievements by NAMA in its first full year of operation after EU Commission approval was granted on 26 February 2010. By the end of 2010, NAMA had acquired €71.2 billion of loans for €30.2 billion and we expect to acquire the residual loans of up to €5 billion as soon as is practicable. NAMA has also approved advances of €592m for working capital purposes and to enable developments such as Montevetro to be brought to completion.”

“We have completed examination of Business Plans from the 30 developers representing over a third of NAMA’s loan portfolio (in terms of debt outstanding) and we have signed, or are close to signing, Memoranda of Understanding with twelve of these. A number of others are at an advanced stage.”