NAMA updates Public Accounts Committee on 2014 progress

The National Asset Management Agency (NAMA) has today provided a comprehensive update on its progress during 2014 to the Oireachtas Public Accounts Committee.

In a presentation to the Committee, NAMA Chief Executive Brendan McDonagh said:

  • NAMA has generated €23.2bn in cash from its loans since being set up 5 years ago this month
  • NAMA has repaid 55pc of its outstanding Senior Debt, two years ahead of schedule. It has redeemed €16.6bn in Senior Debt to date, of which €9.1bn has been redeemed in 2014 alone, and plans to redeem a total of 80pc (€24bn) by the end of 2016. 
  • The State’s contingent liability arising from NAMA and IBRC liabilities has been reduced from €40bn at the start of 2013 to €13.6bn today.

“Our faster-than-anticipated progress on the debt redemption has been made possible by the major improvement in conditions in the Irish commercial property market over the past 18 months and the depth of investor capital being deployed towards Ireland”, said Mr McDonagh. 

The Agency also provided an update on its activities in the Dublin Docklands Strategic Development Zone (SDZ). Mr McDonagh said a detailed business plan has been prepared for each of the sites in which NAMA has an interest, comprising 75pc of the 22 hectares of undeveloped land in the SDZ area. 

“Our initial appraisal suggests that up to 3.4m sq ft of commercial space and 1,848 apartments could potentially be delivered if all these sites were to be fully developed over the next five to seven years”, he said. 

Mr McDonagh added that the Agency has a role in 4 major projects announced in recent weeks – Boland’s Mill, the South Docks Fund, the City Development Fund and Project Wave. In total, these initiatives are expected to provide over 1.5m sq ft of office, retail, residential and cultural accommodation in the Docklands. 

“It is estimated that these new offices, when completed, will accommodate over 10,000 workers. We estimate these initiatives will result in the creation of over 10,000 jobs in the construction sector and another 2,500 jobs in ancillary services”. 

The Agency also said it exceeded its end-2014 target of funding the delivery of 1,000 homes and plans to deliver an additional 1,500 in 2015 and a total of 4,500 by end 2016. 

It also exceeded its target of delivering 1,000 homes for social housing in 2014 and expects to deliver a further 1,000 in 2015, based on local authorities and housing bodies confirming their intention to buy or lease these homes from NAMA debtors.