Nama to recruit panel of property valuers and team of legal advisers

THE NATIONAL Asset Management Agency (Nama) is to hire a panel of at least 35 property valuers from Ireland and overseas and an unspecified number of legal advisers, according to two tender documents published on the Government’s procurement website.

The panel of “suitably qualified and experienced” real estate valuers will provide valuation services to Nama in Ireland, the UK and the US and will begin valuing land and property assets secured by about €90 billion in loans from October.

The panel will be retained for a period of up to four years. Five valuers each will be required to provide valuation services for assets in Leinster, Munster, Connaught and Ulster, while five will be contracted to provide valuation services on a national basis.

A further five valuers will be selected to assess assets in the UK, while the final five will provide valuation services on properties in major cities in the US.

Welcoming the announcement of the tenders, Áine Myler, president of Irish Auctioneers and Valuers Institute (IAVI), said the decision by the Department of Finance to hire professional valuers for up to four years recognised the fact that the properties and land assets would be held by Nama for a considerable period, and that valuers with local and sector expertise would be needed. “This is an incredibly important role,” she said.

Ms Myler added that valuers had not inflated the property bubble: “During that time, valuers reported the facts as they saw them. They interpreted the market, they did not create it.”

In April, Ms Myler said there was “no valid argument to exclude IAVI member firms” from the Nama process, when the Government “has no problem using Irish solicitors, accountants and economists, all of whom acted for the banks and developers” for whose debts Nama was established.

The tender notice for the provision of legal services to Nama states that a panel of solicitors will be required to conduct legal due diligence on the Irish assets that will be acquired by Nama.

“Pro forma due diligence reports will be produced by participating institutions in respect of each asset before it is valued and transferred,” the notice reads.

These reports will include notes on the default status of the asset, hedge arrangements, security arrangements, inter-lender agreements, planning and environmental matters, any litigation disputes, VAT and other taxes and leasing arrangements.

Solicitors who successfully bid for the legal services tenders will review these due diligence reports from the banks and make recommendations to Nama based on their review, as well as conducting further due diligence enquiries in connection with certain assets.

The closing date for tenders for the valuation panel is August 24th, and August 26th for the tender for legal services.