Nama receiver sale of industrial estate open to challenge, High Court rules

A Nama-appointed receiver's sale of an industrial estate without requiring the purchaser be bound by a normal agreement providing for the estate's upkeep is open to challenge, the High Court has ruled.

Under the Nama Act 2009, the normal right to challenge the sale of a property, by entering what is known as a “lis pendens” on the transaction, has “no effect” against Nama or anyone acting on its behalf.

Such a legal caution was entered on the sale of two lots of the 33-unit National Enterprise Park, Portlaoise, Co Laois, when Nama-appointed receiver Kieran Wallace tried to sell the property. It was entered by two management companies who maintain the estate and who claimed Mr Wallace was not entitled to sell the property without requiring the purchaser to continue the existing management agreements covering the estate.

Mr Wallace then applied to the court to dismiss the challenge, alleging it was vexatious, bound to fail and the management companies had no beneficial interest in the estate.

Mr Justice Robert Haughton said there was a public interest in allowing the case against the receiver to proceed. He also refused to vacate the lis pendens entered on the sale.