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NAMA ends 2012 with €3.6 billion in the bank

The agency’s end-of-year report paints a positive picture after repaying €4.75 billion in debts last year.

NAMA chief executive Brendan McDonagh and chairman Frank Daly: pleased with 2012.
NAMA chief executive Brendan McDonagh and chairman Frank Daly: pleased with 2012.
Image: Sasko Lazarov/Photocall Ireland

THE NATIONAL ASSET Management Agency has begun 2013 with a cash balance of €3.6 billion, a level the agency itself claims is “healthy”.

The agency’s end-of-year report for 2012, published this afternoon, outlines that the agency has redeemed €4.75 billion in NAMA bonds to its investors – 63 per cent of the way towards its end-of-2013 target of €7.5 billion.

The agency has raised €6.9 billion through the sale of its assets, and has completed the sale of over 3,900 individual properties.

Those include 100 houses which have been sold under its ’80:20′ mortgage scheme, where new buyers draw down an initial mortgage worth 80 per cent of the total, and only draw down the remainder based on the home’s value in five years’ time.

295 properties have been made available through that scheme, a number set to be increased to 750 later this year.

It also has another €1.5 billion worth of Irish property assets on the market, being sold through debtors and receivers.

NAMA generated €4.4 billion in cash last year, which includes €1.3 billion in what is termed ‘recurring non-disposal income’ – likely to indicate regular rental income from its property holdings.

The agency says it has also identified 3,879 residential properties under control of debtors and receivers which may be suitable for social housing, with demand agreed for at least 1,484 of those and another 841 which could also be used.

It also approved €1.7 billion in advances to its debtors, in order to help them continue trading, of which €1 billion has been drawn down.

NAMA chief executive Brendan McDonagh said the generation of €10.5 billion in cash since NAMA first took loans in April 2010 “reflects a strong performance in terms of asset disposals”.

He added that the figures showed “the importance for NAMA of capturing the rental income from assets under the control of debtors”.

Chairman Frank Daly said there were growing indications of stabilisation in the commercial and residential property markets, and that when this was combined with the amount of bonds NAMA had repaid, it remained likely “we will achieve our ultimate objective of completing our work by 2020.”

Read: NAMA redeems €1.5 billion in bonds

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Gavan Reilly

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