Written answers

Thursday, 25 February 2021

Department of Finance

National Asset Management Agency

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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70. To ask the Minister for Finance the value of properties currently held by NAMA; the value of all such property disposed of to date; and if he will make a statement on the matter. [10887/21]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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I am advised that NAMA does not typically own property, rather NAMA acquired a portfolio of loans for which the properties act as security. As set out in NAMA’s most recent Section 55 Quarterly Report and Accounts, NAMA’s assets at 30 September 2020 included i) loans (primarily secured by properties) measured at fair value of €1,039m; and ii) trading properties and investments in equity and properties of €469m. The majority of properties in NAMA’s remaining secured portfolio comprise land and development assets, much of which is intended for residential development by NAMA’s debtors and receivers.

At acquisition, the properties securing NAMA’s loans were valued at €32 billion. From inception up to 30 September 2020, NAMA generated cash of €39.3bn from the disposal of these properties and loans. An additional €6.4bn was generated in non-disposal income, including rental income from secured properties.

NAMA’s expected lifetime contribution to the Exchequer, between the projected surplus of €4 billion and projected total tax payments of €400m, is €4.4 billion. €2 billion of this projected surplus was transferred to the Exchequer last year.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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71. To ask the Minister for Finance if consideration will be given to the utilisation of NAMA as a means of solving the housing crisis; and if he will make a statement on the matter. [10888/21]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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NAMA was established with a very specific legal mandate, which was approved by the European Commission in 2010, to deal expeditiously with its acquired loan portfolio and to extract best value from that portfolio. NAMA has been successful in achieving this mandate and has now entered into the final phase of this work.

In relation to the delivery of residential housing, it is important to note that NAMA does not build houses itself, rather it works with its existing debtors and receivers to agree development plans, secure/alter planning permission and fund the debtor's delivery of units. Through these efforts NAMA is helping to increase the value of the security supporting the loans of its debtors and so improving NAMA's ultimate recovery on these loans.

NAMA has a well-established overriding commercial mandate to recoup the best return for the Irish taxpayer and this has not changed and has been approved by the European Commission, therefore I have no intention utilising NAMA in a manner outside this commercial mandate. However, that does not mean that NAMA does not carry out objectives, such as facilitating the delivery of residential and social housing, which are entirely consistent with its existing purpose and objectives.

NAMA has an objective of funding or facilitating the delivery of 20,000 residential units, subject to commercial viability, across NAMA-secured residential sites in Ireland. To end 2020, new residential units directly funded or facilitated by NAMA was 12,450 units; and new residential units delivered on land previously secured to NAMA for which NAMA funded planning permission, enabling works, legal or holding costs was 6,550 units.

Looking at NAMA’s residential pipeline at end-2020, 1,500 units were under construction or had funding approved for construction on NAMA-secured sites and 4,900 units had been granted planning permission and planning applications for a further 7,750 units had been lodged or were being prepared.

Up to end 2020, NAMA had identified 7,094 residential units as potentially suitable for social housing. Demand was confirmed by local authorities for 2,770 units, of which 2,614 (94%) had been delivered or contracted by NAMA for social housing purposes at the end-September 2020. This is in excess of NAMA’s social housing delivery target of 2,000.

Under State aid rules a commitment has been provided to the European Commission that NAMA’s operations shall continue for a limited period to the end of December 2025 at the latest and that NAMA shall submit to the Minister for Finance before the end of 2021 a detailed wind-down plan for its ultimate dissolution within this timeframe.

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