As with a bank, NAMA does not own nor does it sell property assets securing its loans. The sale of these assets is conducted by their owners, that is, NAMA debtors, or, in enforcement cases, on behalf of these debtors by duly appointed Receivers/Administrators. I am advised by NAMA that its debtors and receivers have recorded over 2,500 cash receipts in respect of asset sales totalling €4.6 billion as of end August 2012. NAMA advises that cash receipts may relate to sales of individual properties or sales of multiple units as well as disposal of non-real estate assets such as shares and also deposits paid on such transactions. Included in the these cash receipts are sales of some 3,500 individual property units, which can range from undeveloped sites and parking spaces to completed office blocks.
However, these sales have been achieved in accordance with NAMA Board guidelines, a key principle of which is that the conduct of disposals should be on a competitive basis wherever practicable and in accordance with prevailing market practices for the asset class and jurisdiction to which the sale relates.
The Deputy will further note that the NAMA Board guidelines require, where feasible, the sale of assets on the open market and their public advertisement and I am advised by NAMA that in the vast majority of cases the sale of assets securing its loans have been so conducted. In any event, NAMA requires that an independent valuation process be undertaken in respect of all asset disposals over €250,000 in value.
I would also note that while it is the clear policy of NAMA itself to maximise the realised proceeds from all sales of assets securing its loans, it is also clearly in the absolute interest of NAMA debtors to maximise the realised proceeds from the sale of their assets in repayment of their debt. The Deputy will also note the legal, fiduciary and professional obligation on Insolvency Office Holders to maximise the realised proceeds from the sale of debtor assets.
