#Open journalism No news is bad news

Your contributions will help us continue to deliver the stories that are important to you

Support The Journal
Dublin: 1°C Wednesday 12 May 2021
Advertisement

NAMA to take on €2.4bn of undeveloped NI land

The state’s bad bank warns of “financial pain” for developers whose land will have to be sold off as mere farmland.

Image: Cimexus via Flickr

THE NATIONAL ASSET MANAGEMENT AGENCY has told Northern Irish property developers to expect “financial pain” as it takes over €4bn in assets and sells off €2.4bn in undeveloped land as mere farmland.

The chairman of NAMA’s Northern Ireland Advisory Committee, Peter Stewart, said the €4bn in assets was constituted by €400m in developed lands and properties, and €1.2bn in investments as well as the €2.4bn in undeveloped land.

In accordance with NAMA’s mission to maximise the cash inflow for any assets take on, Stewart said it was probable that undeveloped land would be sold on as farmland so as to guarantee a return for the agency.

Noting that Northern Ireland had its own particular property bubble in undeveloped land, Stewart said NAMA’s ten-year timescale meant that “it is likely that we will see what was previously viewed as potential development land being sold to go back to farm land.

“For those builders, developers and also land traders and speculators who got caught up in the frenzy, unfortunately there is going to be financial pain.”

NAMA had previously estimated it would be taking on €4.9bn of assets based in Northern Ireland, but said that estimate included the assets of debtors based outside Northern Ireland.
The BBC says it was reported in May that up to 150 developers from Northern Ireland would have assets taken on by NAMA, which is hoovering up any loans to the value of over €5m from the institutions who lent them at a discount.

About the author:

Gavan Reilly

Read next:

COMMENTS