Warning on Nama timeline for assets transfer

THE TIMELINE for the transfer of the first tranche of assets to Nama is unrealistic, the managing director of one of the country’s largest estate agencies has warned.

At the annual conference of the Society of Chartered Surveyors, Lisney managing director Peter Stapleton said it was “difficult to see” how the first wave of assets could be transferred to Nama by the end of the year as stated in the business plan for the new agency.

Meanwhile, Bank of Ireland’s head of private banking, Mark Cunningham, told delegates that the Government had got a “good deal” for the taxpayer through Nama.

He also expressed optimism that Bank of Ireland would raise capital on the international markets by early 2010, once international investors had “clarity” on how Nama was working.

About 250 surveyors were at yesterday’s conference, at which the president of the Society of Chartered Surveyors, Ken Cribbin, called for the Government to introduce a €5 billion stimulus package over three years for the construction sector.

Much of the discussion centred around the implications of Nama for surveyors and valuers.

According to the Nama business plan published on Wednesday, the agency will pay fees and expenses of €2.64 billion over its 10-year lifespan, a proportion of which is to include fees to surveyors and valuers.

Nama is to employ a panel of 25-30 valuers who will “audit and review” the valuations of loans provided by the banks. In addition, the banks have already begun a process of recruiting surveyors and valuers to work on their behalf.

It is understood that most of the country’s estate agents and private surveying companies are tendering for valuation work with both Nama and the banks.

While welcoming Nama as a source of future business activity for surveyors, Mr Stapleton warned that the valuation process faced a “resource issue” and that banks had been “very slow to come to valuers with instructions”.

“I’m not sure that those in Nama and the banks understand the depth of the task, given the scale of reporting that is required,” he said.

He also told delegates that it “behoved valuers not to take what one judge had recently called ‘fanciful’ valuations” in any work undertaken for Nama or the banks.

On the subject of professional fees, Mr Cribbin defended the industry, and rejected claims by the Tánaiste earlier this year that contract fees needed to be reduced. “Most of the work being done by surveyors is being charged at a price that is below cost.”

Mr Stapleton added that the market would dictate the price at which Nama would pay its surveyors and valuers.