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Under the bonnet

Here's the most complete breakdown of NAMA loans you'll see today

NAMA says that the lending “seems to have been carried out in haste” with poor security and documentation.


Click here for a larger image

THREE BORROWERS WERE responsible for a total of €8.275 billion transferred into the Natinoal Asset Management Agency in 2009.

A new document presented by NAMA chief executive Brendan McDonagh today shows a complete breakdown of how much lenders owed, segmented by categories based on how much was transferred.

The largest category by total amount was for borrowers who owed between €100 million and €249 million, which added up to just under €12.5 billion. There were a total of 82 debtors in this category, with an average debt of €152 million each.

In all, a total of 772 borrowers transferred €74 billion into NAMA. The average transfer was €96 million.

The largest category by total amount of lenders was for loans of less than €20 million, with 302 individuals included and an average transfer of €7 million, adding up to a total of €2.117 billion.

The numbers were contained in a presentation made by Brendan McDonagh at the Sunday Business Post Corporate Turnaround Conference in Dublin.

Poor lending

The presentation states that:

  • NAMA thought at the time that “lending seems to have been carried out in haste”, with “inadequate security and documentation” attached.
  • The majority of the debtors had loans with all financial institutions that transferred loans to NAMA, with no measure of total exposure per lender within the regulator.

It goes on to outline how the 189 most indebted borrowers, with total borrowings of €61 billion, were ‘intensively managed’ by the state’s bad bank.

Meanwhile the remaining 586 borrowers accounting for the other €13 billion of debt were managed through the participating banks, with NAMA feeding into the process.

Working it out

Some 43 per cent of the loans were restructured using what NAMA calls a ‘consensual workout’.

The document outlines that this means debtors usually manage the agreed property and realisation strategy, with close monitoring from NAMA. Rental income from the assets also goes to NAMA.

The document goes on to say that NAMA has netted €4.2 billion in recurring cash payments from its portfolio, mostly in the form of rental income.

This is out of a total of €12.9 billion in cash that has come into NAMA from various sources connected to its holdings.

Enforcement proceedings are only initiated as a last resort, according to the presentation.

What’s left?

This slide, also taken from the presentation, shows that the majority of the real estate still owned by NAMA is in Dublin. Some 18 per cent is scattered throughout the rest of the country, with the same amount in London.


Click here for a larger image

The rest is split between the UK, Northern Ireland and the rest of the world.

The majority is development land, with 19 per cent retail space and 17 per cent office space.

70 per cent of sales to date relate to UK property, with Irish assets representing 54 per cent of total sales in 2014 so far.

What’s next?

McDonagh promised that NAMA will bring packaged portfolios, each with a minimum value of €250 million, to the market in each quarter.

NAMA is also projecting that it could contribute 30,000 construction and associated jobs in the Irish economy to 2016, mainly through the completions of its portfolio and new developments on its land bank.

Here’s how many houses Nama has handed over for social housing>

On the green: NAMA nets €5 million for €80 million Kildare golf resort>

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