National Asset Management Agency

Dáil Éireann Debate, Tuesday - 14 February 2012

Tuesday, 14 February 2012

Questions (123, 124, 125)

Stephen S. Donnelly

Question:

162 Deputy Stephen S. Donnelly asked the Minister for Finance with regard to the recent advertisement by the National Asset Management Agency for a company to provide management services for a qualified investment fund, the estimated size of this fund, in value; the assets, or asset types, that will be transferred to the fund; if loan and property valuations and due diligence will be conducted on these assets before their transfer to the fund; the way the funds will be marketed; the origin of this initiative, that is with a proposal from within NAMA or from within the Department of Finance, or from elsewhere; the analysis that was conducted prior to this decision; if he will release a copy of that analysis; and the rationale for the initiative. [7874/12]

Pearse Doherty

Question:

170 Deputy Pearse Doherty asked the Minister for Finance with respect to the establishment of a qualified investment fund by the National Asset Management Agency, the scale of the funds involved in this fund; which assets will be transferred to the fund; will the establishment of this fund or transfer of assets to the fund involve more loan and property valuations and due diligence before assets are transferred to the funds; the way the funds will be marketed; if this will involve the taking on of more staff beyond NAMAs existing top-line 200 employee claim; if this initiative emerged from within NAMA, the Department of Finance or another body; if the initiative will prevent property coming onto the market and thereby prevent property reach a clearing price and bottom; and if he will make a statement on the matter. [8131/12]

Michael McCarthy

Question:

172 Deputy Michael McCarthy asked the Minister for Finance in relation to the qualified investment fund being set up by the National Asset Management Agency, the type of assets that will be transferred to the fund; how large the funds will be; the way the funds will be marketed; from whom the idea to establish the QIF came; and if he will make a statement on the matter. [8149/12]

Written answers

Minister for Finance (Deputy Michael Noonan)

I propose to take Questions Nos. 162, 170 and 172 together.

I am informed by NAMA that it is currently tendering for Investment Management, Custodian and Fund Administration services with a view to establishing a Qualifying Investment Fund (QIF). Preparations are currently being made by NAMA to obtain the requisite regulatory approval and to set in place the appropriate governance and operational arrangements with a view to establishing a number of such funds during 2012.

The proposal emanated from within NAMA and has received approval in principle from the NAMA Board. NAMA advises me that the analysis which was presented to the Board contains commercially sensitive information and it has no plans to publish it.

The proposal would involve NAMA acquiring property assets, on an arm's length basis, from receivers (or from debtors who would cede secured property directly to NAMA) and to package them into various combinations which could be monetised through sale to investors. It is proposed to assemble portfolios based on asset types (office, residential, retail, etc.) or geographical region (Ireland, Dublin, UK, etc.) and to secure international investment based on specialist investor preferences.

It is not envisaged that additional due diligence will be required given the substantial amount of information which has already been collated on loans and on the property assets securing them.

If regulatory approval is granted, the Board will consider issues such as the size of the QIF and its marketing.

It is not envisaged that additional recruitment of staff will be required as the administration and management of the Fund will operate on an arm's length basis from NAMA. As the Fund is intended to facilitate the investment of funds from abroad into the Irish commercial property market, NAMA anticipates that its impact will therefore be positive.