Wednesday, 18 July 2012

Questions (77, 78, 79, 80, 81, 82, 83, 84)

Michelle Mulherin

Question:

76 Deputy Michelle Mulherin asked the Minister for Finance the number of firms of solicitors that are on the National Asset Management Agency panel of solicitors; and if he will make a statement on the matter. [35790/12]

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Michelle Mulherin

Question:

77 Deputy Michelle Mulherin asked the Minister for Finance the number of firms of solicitors that have received work from National Asset Management Agency since they were appointed to the panel; and if he will make a statement on the matter. [35791/12]

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Michelle Mulherin

Question:

78 Deputy Michelle Mulherin asked the Minister for Finance the firms of solicitors that have received work from National Asset Management Agency since the panel of solicitors was established; and if he will make a statement on the matter. [35792/12]

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Michelle Mulherin

Question:

79 Deputy Michelle Mulherin asked the Minister for Finance the number of cases that have been referred by National Asset Management Agency to those firms of solicitors who have received instructions from it in the past two years; and if he will make a statement on the matter. [35793/12]

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Michelle Mulherin

Question:

80 Deputy Michelle Mulherin asked the Minister for Finance the number of firms of solicitors on the National Asset Management Agency panel that have not yet received any instructions from it; and if he will make a statement on the matter. [35794/12]

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Michelle Mulherin

Question:

81 Deputy Michelle Mulherin asked the Minister for Finance the reason National Asset Management Agency has not used all of the firms of solicitors on the NAMA panel; and if he will make a statement on the matter. [35795/12]

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Michelle Mulherin

Question:

82 Deputy Michelle Mulherin asked the Minister for Finance the number of firms of solicitors in Connacht that are on the National Asset Management Agency panel; and if he will make a statement on the matter. [35796/12]

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Michelle Mulherin

Question:

83 Deputy Michelle Mulherin asked the Minister for Finance the work, if any, that has been given to solicitors on the NAMA panel in Connacht in the past two years; and if he will make a statement on the matter. [35797/12]

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Written answers (Question to Minister for Finance)

I propose to take Questions Nos. 76 to 83, inclusive, together.

I am advised by NAMA that a list of all tenders run by it and the results of the tenders are available on its website, www.nama.ie. NAMA operates three legal panels from which it procures services as and when required:

Legal Due Diligence Panel (Issue date: 31st of July 2009)

Enforcement and Refinancing Panel (Issue date: 31st March 2010)

Corporate Legal Services Panel (Issue date: 22nd September 2011)

The list of firms on each panel is available at www.nama.ie/procurement/.

It is not clear as to which Panel the Deputy is referring. On the presumption that the questions relate to the Legal Due Diligence Panel, NAMA advises that:

The appointment by the NTMA of the 64 legal firms to that legal panel was carried out in advance of the establishment of NAMA. It was made in contemplation of due diligence work which would be carried out by NAMA in respect of the acquisition of relevant bank assets from institutions participating in the NAMA scheme. At that time, the NTMA did not have a clear view of the resources that would be required to fulfil that task. Accordingly, it made clear that the making of any such appointment would not necessarily mean that a successful appointee would subsequently be engaged. This was specified in clause 3.1 of that agreement.

As it transpired, the vast bulk of loans (and corresponding debt exposures) acquired by NAMA were highly concentrated in a relatively small number of debtors whose secured lending arrangements were both complex and expansive. NAMA formed the view that it required the assistance of certain specialist firms on its panel who, in NAMA's view, had the resources, expertise and experience to deal with those arrangements. That is not to say, however, that NAMA only relied on such firms in the due diligence process. As the process progressed, NAMA engaged firms of all sizes and representing a geographic spread. However, it should be noted that over 90% of the property collateral securing NAMA loans was based in a small number of counties: Dublin, Cork, Galway, Limerick, Wicklow, Kildare, Meath and Louth.

While NAMA was aware of having the resources of the entire appointed panel at its disposal, it did not actually need to engage all on that panel for a variety of reasons. Amongst these, NAMA engaged a number of solicitors to work with it directly, in-house, in carrying out the legal due diligence function, which brought significant efficiencies and acquired knowledge within the Agency. NAMA also, in conjunction with the participating institutions, refined the due diligence process to enable NAMA to limit the legal resources it required.

The work for which this panel was formed is now substantially complete and those on the Panel will be notified of its termination in due course.

In relation to due diligence work carried out for NAMA from its inception to end-March 2012, please be advised of the following fees paid, which formed part of a response to a previous parliamentary question on the matter:

Due Diligence Costs

Due diligence costs are costs that NAMA has incurred upon acquiring the portfolio of loans from the Participating Institutions. The Loan valuation model used by NAMA to acquire the loans makes an allowance for due diligence costs as a reduction from the acquisition value of the loans and as a result NAMA recovers the majority of its due diligence costs from the Financial Institutions.

a) Legal due diligence (from inception to March 31st, 2012)

Legal due diligence costs are recovered from the Financial Institutions through a reduction in the acquisition value.

Legal due diligence

2010

2011

2012

Total €’000

Hogan Lovells International LLP

1,279

1,046

134

2,459

Allen & Overy LLP

922

633

12

1,567

Arthur Cox

1,033

419

96

1,548

Dillon Eustace

709

428

5

1,142

Maples and Calder

553

550

0

1,103

Beauchamps Solicitors

289

702

77

1,068

Byrne Wallace

605

418

0

1,023

Matheson Ormsby Prentice

339

622

33

994

Eversheds O’Donnell Sweeney

380

214

20

614

LK Shields Solicitors

377

196

0

573

Arthur Cox Northern Ireland

165

193

91

449

Gartlan Furey Solicitors

39

304

0

343

Ronan Daly Jermyn Solicitors

116

202

0

318

Eugene F Collins

269

0

0

269

Gore & Grimes Solicitors

61

198

7

266

Andrew Crean-Lynch Solicitors

67

63

64

194

O’Flynn Exhams Solicitors

70

100

0

170

Holmes O’Malley Sexton Solicitors

0

153

0

153

Mason Hayes & Curran

64

21

34

119

A&L Goodbody Solicitors

0

69

28

97

Tods Murray

42

23

0

65

William Fry Solicitors

60

0

0

60

Ogier

6

35

0

41

Campos Ferreira Sa Carneiro

27

0

0

27

Cains

0

11

0

11

R. John McBratney (Exper Reviewer)

24

-14

0

10

Parker, Hudson, Rainer & Dobbs LLP

0

3

0

3

Mourant Ozannes

0

1

0

1

Total

7,497

6,591

599

14,687

b) Property due diligence (from inception to March 31st, 2012)

Property due diligence costs are recovered from the Financial Institutions through a reduction in the acquisition value.

Property due diligence

2010

2011

2012

Total €’000

Donal O'Buachalla & Co Ltd

329

873

0

1,202

Colliers International Dublin

444

524

19

987

Lisney Ltd

293

567

11

871

Jones Lang Lasalle Ltd -Dublin

330

428

2

760

Knight Frank LLP

266

490

3

759

WK Nowlan & Associates

327

406

16

749

Lambert Smith Hampton

111

578

2

691

HWBC Ltd

210

418

3

631

Savills Commercial (Ireland) Ltd

52

456

105

613

CB Richard Ellis

278

283

50

611

Bannon Commercial Property Consultants Ltd

229

301

3

533

Irish & European

70

417

7

494

Cushman and Wakefield

56

355

65

476

DTZ Sherry Fitzgerald

75

391

40

506

Rooney Auctioners & Chartered Surveyors

82

327

6

415

GVA Grimley Ltd

142

231

0

373

Drivers Jonas Deloitte

106

208

0

314

Cohalan Downing

71

203

0

274

Gerlad Eve LLP

32

190

0

222

Colliers International Belfast

53

158

5

216

Osborne King Commerical Property Consultants

30

175

0

205

BTW Shiells Commerical Property Consultants

39

143

5

187

Frazer Kidd & Partners

44

85

22

151

DTZ Sherry Fitzgerald Ltd - Cork

11

59

0

70

Colliers International USA

44

18

2

64

CB Richard Ellis Hotels

2

34

6

42

Savills Commercial (UK) Ltd

25

8

0

33

J Sheils Planning & Enviornmental Ltd

0

23

0

23

Lisney Ltd (Belfast)

0

16

0

16

CB Richard Ellis (GBP) Ltd

14

0

44

58

DTZ McCoombe Pierce

12

1

0

13

Knight Frank (Dublin)

0

9

10

19

CB Richard Ellis (France) Valuation

0

11

0

11

Savills Immobilien Beratungs-Gmbh (Berlin)

0

7

0

7

CB Richard Ellis Inc

0

6

0

6

Colliers International London

6

0

0

6

Cushman and Wakefield of Florida Inc.

6

0

0

6

CBRE sr.o (Czech Republic)

0

0

5

5

Savills Consultores Inmobiliarios

0

4

0

4

DTZ Debenham Tie Leung

0

1

0

1

David White Valuations

1

0

0

1

CB Richard Ellis (Srbija)

0

0

1

1

CBRE NI (Northern Ireland)

0

0

1

1

Total

3,791

8,403

433

12,627

c) Loan Valuation and related due diligence (from inception to March 31st, 2012)

Loan valuation and related due diligence costs are recovered from the Financial Institutions through a reduction in the acquisition value.

Loan Valuation & related due diligence

2010

2011

2012

Total €’000

Enrst & Young

1,521

6,867

33

8,421

PriceWaterhouseCoopers

3,858

3,662

6

7,526

Alvarez & Marsal Europe LLP

2,214

4,410

450

7,074

FTI Consulting Ltd

881

2,676

770

4,327

UHY Hacker Young LLP

659

2,096

986

3,741

Lisney Ltd (Belfast)

9,132

19,711

2,244

31,087