Dáil Éireann Debate, Thursday - 28 February 2013
79. Deputy Peadar Tóibín asked the Minister for Finance if he has directed, or will consider requesting, National Asset Management Agency to adjust relevant lease terms to reflect current market values for properties in which Departments or State agencies are leasees. [10777/13]
View answer80. Deputy Peadar Tóibín asked the Minister for Finance if he has directed or will consider requesting the National Asset Management Agency to remove upward only rent review clauses from relevant leases in which Departments or State agencies are leasees. [10778/13]
View answerI propose to take Questions Nos. 79 and 80 together.
As the deputy is aware NAMA has acquired loans from the five participating institutions and is not the owner/operator of properties. The Agency’s role is that of a secured lender.
Properties securing NAMA’s loans continue to be owned and managed by their existing owners or, in the case of enforcement, on their behalf by the duly appointed receiver/administrator. NAMA is not party to and has no legal role in relation to contracts between property owners/appointed insolvency practitioners and third parties.
On the issue of rent abatements, NAMA has published very clear Guidelines, available on www.nama.ie , for tenants seeking a rent reduction from a NAMA debtor or receiver. It is important to emphasise that applications for rent abatements may be made in situations where tenants of NAMA debtors can demonstrate that the rents payable under their current leases are in excess of current market levels and, as a result, that the viability of their businesses is threatened. In such circumstances, tenants may seek NAMA’s approval for rent reductions. The Guidance Note is intended to support small businesses around the country that are struggling because of the current economic environment. By end-December 2012, the Agency had approved 212 applications for rent abatement with an aggregate annual value of €13.5 million. A further 56 applications were being reviewed. Only 8 of the 276 applications received to that data had been refused. This equates to a 97% approval rate by NAMA.
