Michael Noonan (Limerick City, Fine Gael)

Under the NAMA Act 2009, the sale of private property by the National Asset Management Agency is a matter for the board of NAMA. I have no function on such matters. I am advised by NAMA that the NAMA board issued policy guidelines in mid-2011, which set out that, in the absence of very exceptional circumstances, the sale of all property assets undertaken by debtors or receivers shall be by the appointment of suitably qualified agents and that all such sales must be appropriately marketed. The marketing strategy for all asset disposal is determined by a range of factors, including the asset class, size, value and location. In all events, NAMA insists on independent valuations of all assets.

A key principle of the guidelines is that the conduct of disposals should be on a competitive basis and in accordance with prevailing market norms for the asset class and jurisdiction, having regard to NAMA's objectives set out in section 10 of the Act. NAMA advises the principal methods of sale are private treaty, sale negotiated directly with a purchaser, sale by public auction, sale by public tender, sale by sealed bids, and other disposal mechanisms tailored to the specific characteristics of the underlying real estate or a combination of the above. Sale instruction and contracts with agents and brokers require prior approval by NAMA or the participating institutions.

The guidelines also require that sales agents are expected to prepare a final report and recommendation addressed to the debtor and copied to NAMA. Included in these reports should be a summary of the marketing campaign which, generally, should not be less than one month; a list of all parties who expressed interest in the real estate or were contacted during the marketing campaign; a recommendation to accept the terms of the purchaser's offer as the best price reasonably obtainable for the asset at the date of the recommendation; confirmation that the agent has reviewed purchaser's confirmation relating to connected party sales; and a statement disclosing any commercial relationship between the agent, debtor, purchaser or purchaser's ultimate beneficial owners in the past five years and how any actual or perceived conflict of interest was managed during the sales process.

Additional information not given on the floor of the House.

In certain limited circumstances, NAMA and the participating institutions may agree an alternative form of disposal with the debtor or insolvency office holder with, for example, more limited marketing or reporting requirements. However, decisions on alternative forms of disposal are subject to review by the board of NAMA.

The Deputy recently raised concerns in relation to the sale of land controlled by NAMA debtors in Cork.

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