Written answers

Tuesday, 15 July 2014

Department of Finance

NAMA Investment Funds

Photo of Stephen DonnellyStephen Donnelly (Wicklow, Independent)
Link to this: Individually | In context | Oireachtas source

188. To ask the Minister for Finance the number of qualifying investor funds in which the National Asset Management Agency has co-invested; the name of the qualifying investor funds; the investment partners; the date on which they were approved by the Central Bank of Ireland; the objects of each of the QIFs, and the value of the expected contribution by NAMA to each QIF. [31070/14]

Photo of Stephen DonnellyStephen Donnelly (Wicklow, Independent)
Link to this: Individually | In context | Oireachtas source

189. To ask the Minister for Finance the strategy of the National Asset Management Agency in relation to its qualifying investment funds; if NAMA has plans to market the QIFs to investors; if NAMA is presently open to selling investment stakes in the QIFs; if NAMA has plans to convert the QIFs into real estate investment trusts; if NAMA intends creating more QIFs; and if he will make a statement on the matter. [31071/14]

Photo of Stephen DonnellyStephen Donnelly (Wicklow, Independent)
Link to this: Individually | In context | Oireachtas source

190. To ask the Minister for Finance in relation to the maiden qualifying investment fund at the National Asset Management Agency, registered on 2 July 2013, and dubbed the South Docks Fund, if he will confirm the value of assets so far contributed by NAMA to the QIF, and the return on investment to NAMA on the QIF after its first full year of operation; his view on that return on investment; and if he will make a statement on the matter. [31072/14]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 188 to 190, inclusive, together.

I am advised by NAMA that it has co-invested in two Qualifying Investor Funds, Gangkhar plc, promoted by Starwood, and Targeted Investment Opportunities plc, promoted by Oaktree.  In the case of Targeted Investment Opportunities plc, NAMA has invested in two sub-funds, namely the South Docks Fund and the City Development Fund, and in the case of Gangkhar plc, NAMA has invested in one sub fund, namely Gangkhar Fund I.  The investment partner in Gangkhar Fund I is White River Holdco.   The investment partners in the South Docks Fund are Oaktree Capital Management, Willett/Arnow and Bennett.  The investment partners in the City Development Fund are Thompsonville Limited and OCM Holdings. Targeted Investment Opportunities plc was incorporated on 15 May 2013 and Gangkhar plc was incorporated on 4 June 2013.   The objective of Gangkhar Fund I is to generate an attractive return through a combination of rental income and capital appreciation generated by obtaining exposure primarily to property and property related assets.The objective of both the South Docks Fund and the City Development Fund is to generate capital growth over the longer term by developing, managing and realising property assets on development sites in Dublin Docklands. 

The value of the expected contribution by NAMA to each Qualifying Investor Fund is commercially sensitive.  NAMA has a 20% shareholding in Gangkhar Fund 1, a 16.5% shareholding in South Docks Fund and 47.8% shareholding in City Development Fund.   

In accordance with the objective of the South Docks Fund to generate capital growth over the longer term and the nature of the un-developed assets in the Fund, the development of which is subject to the planning process, it is not envisaged that there will be return on investment in the first year of operation.  Returns will be generated as planning consent is established, assets developed on the sites and realised over the longer term. 

NAMA's stated position is that its development funding in the Dublin docklands and in other areas in which its assets are located will be delivered through a range of mechanisms, including directly via debtors and receivers and, where appropriate, through joint venture arrangements, including Qualifying Investor Funds.    I am advised by NAMA that it intends, in this respect, to invest in further Qualifying Investor Funds. 

For clarity, where NAMA is involved in Qualifying Investor Funds it is in the capacity as an minority investor. Qualifying Investor Funds are managed by an Investment Manager approved by the Central Bank of Ireland and with responsibility to all shareholders.   Accordingly, the investment strategy, including decisions relating to, for instance, selling investment stakes or converting into Real Estate Investment Trusts, are a matter for the relevant Qualifying Investor Funds.  Equally, the marketing of Funds to investors and related activities are a matter for the Qualifying Investor Funds.   NAMA constantly evaluates its assets including its various Qualifying Investor Fund shareholdings and the timing of disposal is a matter for NAMA.

Comments

No comments

Log in or join to post a public comment.