Nama chief urges caution as property market recovers

The chief executive of the National Asset Management Agency has said there is "still a need for caution" in the Irish property market in spite of the recent upturn in sentiment that has prompted the agency to accelerate the disposal of assets here.

"We know from our recent past that forecasting with any precision the property market is inherently difficult," Nama chief executive Brendan McDonagh told the London branch of Chartered Accountants Ireland on Thursday night. Mr McDonagh said the number of sales last year of Irish commercial property by Nama debtors and receivers exceeded the total sales in 2010, 2011 and 2012.

Urban areas
He noted that global ratings agency Moody's had declared the property crash here as over and that the market is recovering in main urban areas.

Mr McDonagh said Nama is “profitable” and would publish its annual results in late May. The agency generated €5.9 billion in 2013. Of this, €4.5 billion relates to asset disposals and other income, mainly rental receipts from properties controlled by debtors and receivers.

The residual €1.4 billion relates to payments of principal and interest received from the special liquidators to IBRC. From inception to March 14th, Nama has generated gross cash flows of €20.1 billion.

Mr McDonagh said Nama is “confident” of redeeming €15 billion of its €30.2 billion senior debt by the end of this year. This would be ahead of schedule. The total redeemed stands at €10.5 billion.

He said Nama has made a “strong start” to 2014 and would offer packaged portfolios with a minimum value of €250 million each quarter to help “sustain positive momentum and provide investors with deal-flow certainty”.

Two large loan portfolios are on active sale in Ireland with an aggregate par book value of in excess of €2 billion, with two more in the pipeline.

Among the assets for sale is a portfolio called Project Holly – a loan book with a par debt value of €373 million. This includes office blocks in Charlemont Place, the Watermark building by Shelbourne Stadium greyhound track, and City North Hotel in Gormanstown.