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.
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