Michelle Mulherin (Mayo, Fine Gael)
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55. To ask the Minister for Finance his view on recent press reports that available overseas capital for Ireland will be substantially absorbed by portfolios of loans and properties being offered by overseas banks and therefore will not be available for investment in National Assets Management Agency assets; and if he will make a statement on the matter. [42798/13]

Michael Noonan (Limerick City, Fine Gael)
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NAMA’s objective is to recover the greatest amount possible for the taxpayer through the management and disposal of its acquired loans and the property assets securing them. In line with this, NAMA does not engage in fire sales, which is the sale of a loan or asset at below its intrinsic value. Rather, loans and properties are made available for sale in line with the absorption capacity of the relevant market.

Through this approach, NAMA’s has, to date, generated €14bn in cash, including €9.4bn from asset and loans sales. This includes the sale of over 2,000 individual property assets in Ireland and there are currently €1.5bn worth of Irish commercial and residential properties on the market for sale through NAMA debtors and receivers. The Deputy will also be aware that NAMA will be bringing two portfolios, comprising prime residential and commercial property, with an estimated value of €350-€400m, to the market over the coming weeks, which follows the recent sale by the Agency of an €800m loan portfolio secured almost entirely on Irish property. I am satisfied there are ample opportunities for market participants to purchase assets secured by NAMA.

In terms of other investments in NAMA assets, NAMA is providing development funding, on a commercial basis, for the completion of existing projects and the development of new projects to meet the growth needs of the economy. NAMA has approved €800 million in advances for projects in Ireland, over €500 million of which has been drawn down. This is part of NAMA’s capital funding plan to advance at least €2 billion for the projects in Ireland over the period to the end of 2016.

The types of projects being supported include residential, commercial and retail projects around the country for example The Grange, Stillorgan, Co Dublin which is a mixed residential and commercial development, the Oranmore Town Centre, Co Galway which involves the completion of a commercial development consisting of retail and office space and Phase 2 of Scotch Hall, Drogheda, Co Louth to comprise of additional retails units and leisure facilities. NAMA also plans to advance significant new developments, for example, the development of substantial commercial and residential development in the Dublin Docklands to accommodate the continued expansion of the IFSC and the creation of new business and technology hubs linked to existing companies such as Google and Facebook.