Stephen Donnelly (Wicklow, Independent)
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206. To ask the Minister for Finance in view of recent commercial real estate transactions in Dublin city centre, where per square foot capital prices of €900 have been achieved, if he is satisfied that the National Asset Management Agency correctly valued property linked to the loans it acquired in 2010 and 2011; if valuations correctly recognised development or redevelopment potential; or if valuations might have been impugned by an over-reliance on yield analysis; and if he will make a statement on the matter. [26069/14]

Michael Noonan (Limerick City, Fine Gael)
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The values at which eligible bank assets were acquired by NAMA were determined in accordance with regulations made by the Minister for Finance in March 2010, using a methodology approved by the European Commission.  The process valued loans by calculating the present value of the cash flows associated with the loans' underlying collateral. All property collateral was valued by professional valuers in accordance with international valuation standards. The rates used to discount the cash flows to present values (NAMA discount rates) were set down in the regulations.  The Deputy will note that Section 79 of the Act and the associated valuation regulations set out detailed criteria to be taken into account in determining the long-term economic value of property and of bank assets.

The Deputy may wish to note that extensive information on the NAMA loan acquisition process, including the valuation of loans, is set out in NAMA's Annual Report and Financial Statements for 2010 and in the three special reports on NAMA published by the Comptroller and Auditor General: Special Report on NAMA Acquisition of Bank Assets, October 2010; Special Report on NAMA Management of Loans, February 2012; and Special Report on NAMA Progress 2010-2012, May 2014.  These reports are available on the NAMA website, .