NAMA Property Leases

Questions (63)

Pearse Doherty

Question:

63. Deputy Pearse Doherty asked the Minister for Finance if he will outline the arrangement between the National Asset Management Agency and the National Association of Building Co-Operatives; the number of properties to which the arrangement relates; the length of the lease terms; if NAMA is charging market rents; the location of the properties; and if he will make a statement on the matter. [21636/13]

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Written answers (Question to Finance)

NAMA, through its subsidiary National Asset Residential Property Services, has entered into an agreement to lease 13 houses in Cobh, County Cork to the National Association of Building Co-Operatives (NABCO). I am advised by NAMA that the particulars of the lease agreement, including term length and rental fee, have been negotiated in confidence with NABCO as a commercial counterparty and it would not be appropriate for the Agency to publish such details as it could prejudice the conduct or outcome of NAMA’s negotiations with other commercial counterparties.

NAMA Property Sales

Questions (64)

Pearse Doherty

Question:

64. Deputy Pearse Doherty asked the Minister for Finance if he will confirm for each of 2010, 2011, 2012 and to date in 2013, the number of housing units sold by the National Assets Management Agency in the State for social housing; the number leased and the number presently being offered for sale or rent for social housing. [21637/13]

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Written answers (Question to Finance)

I am advised by NAMA that, since December 2011, it has identified over 4,000 residential properties as being available for social housing purposes to the Housing Agency. To date, demand has been confirmed by the relevant local authorities/Housing Agency for just over 1,500 of these properties; another 2,000 are no longer under consideration for a number of reasons including a lack of demand or because they have been deemed by the local authorities to be unsuitable. The rest of the identified properties are in the process of being assessed. Once demand for a property has been confirmed by a local authority/Housing Agency, NAMA facilitates contact and negotiation between its debtor or receiver and the local authority or Approved Housing Body (AHB) to acquire or lease the property. To help streamline delivery, NAMA established a special purpose vehicle, National Asset Residential Property Services Limited, to take ownership of properties for which demand has been established. After contracts are signed and the properties are deemed to be habitable, there is no impediment to the early delivery of the properties by NAMA debtors and receivers.

I am advised that a full breakdown of the 1,500 properties for which demand has been confirmed to date is provided on the Housing Agency website (www.housing.ie/NAMA), including an update of the position as at end-March 2013.

NAMA Accounts

Questions (65)

Pearse Doherty

Question:

65. Deputy Pearse Doherty asked the Minister for Finance further to the publication of the 2012 unaudited accounts for the National Asset Management Agency, the reason interest income increased in 2012 compared with 2011, despite loans decreasing by €3bn and the European Central Bank reducing its main interest rate from 1.0% to 0.75% in July 2012. [21638/13]

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Written answers (Question to Finance)

I have been advised by NAMA that interest and fee income of €1.39 billion recognised in its 2012 unaudited accounts principally comprises interest recognised on its loans and receivables in accordance with the effective interest rate method of accounting which accrues interest at a specified interest rate each year. Such interest recognised on loans and receivables does not necessarily correlate with ECB interest rate movements. This is further explained in Note 2.8 (Interest Income and Expense) on page 22 and Note 3 (Interest Income) on page 26 of the unaudited Section 55 accounts of National Asset Management Limited.

NAMA Accounts

Questions (66)

Pearse Doherty

Question:

66. Deputy Pearse Doherty asked the Minister for Finance further to the publication of the 2012 unaudited accounts for the National Asset Management Agency, if he will provide an explanation for the line item portfolio management fees which in 2012 amounted to a cost of €4,670,000 compared to €15,902,000 in 2011. [21639/13]

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Written answers (Question to Finance)

I have been advised by NAMA, that portfolio management fees principally comprise direct fees incurred in the on-going management of debtors. 2012 costs include, inter alia, property valuation, asset search and loan sale costs. The reduction in costs in 2012 to €4.67m from €15.9m reflects the fact that the majority of the 2011 costs related to fees for the independent review of debtor business plans. The independent review of such debtor business plans was substantially concluded in 2011.

NAMA Accounts

Questions (67)

Pearse Doherty

Question:

67. Deputy Pearse Doherty asked the Minister for Finance further to the publication of the 2012 unaudited accounts for the National Asset Management Agency, the reason due diligence costs of €4,086,000 were recorded in 2012 in view of the fact that the last tranche of NAMA loans were acquired in March 2012; and if the due diligence costs are properly rechargeable to the banks from which the loans were acquired. [21640/13]

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Written answers (Question to Finance)

NAMA has advised that loan due diligence was substantially completed by the end of March 2012. The due diligence costs incurred in 2012 reflects the final settlement of fees to NAMA’s appointed advisers. Since inception, NAMA has recovered from the participating institutions €64.1m, of its total due diligence costs of €78.2m, through a reduction in the acquisition value of the loans. The balance of due diligence costs of €14.1m, including costs of €4.1m in 2012, has been expensed in NAMA’s accounts.

NAMA Accounts

Questions (68)

Pearse Doherty

Question:

68. Deputy Pearse Doherty asked the Minister for Finance further to the publication of the 2012 unaudited accounts for the National Asset Management Agency, the staff costs excluding employer pension contributions and pay related social insurance in 2012; the average number of full time equivalent employees at the Agency during the year; and if he will make a statement on the matter. [21641/13]

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Written answers (Question to Finance)

All NAMA staff are employees of the NTMA and under section 42 of the National Asset Management Agency Act 2009, the NTMA assigns staff to NAMA. NAMA reimburses the NTMA the costs incurred by the NTMA in assigning staff and providing business and support services to NAMA. NAMA staff costs, excluding employer pension contributions and PRSI, were €21.952m in 2012. NTMA staff members are subject to the Public Service Pension Deduction. The average number of NTMA employees assigned to NAMA during the year was 214.

NAMA also draws on the NTMA’s shared services in a number of areas including Finance, HR, IT and market risk. Staff costs in the provision of these shared services are not included in the above figure.

NAMA Accounts

Questions (69)

Pearse Doherty

Question:

69. Deputy Pearse Doherty asked the Minister for Finance further to the publication of the 2012 unaudited accounts for the National Asset Management Agency, if he will confirm the split of the €2.8bn of asset disposals between loan sales and real estate property sales. [21642/13]

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Written answers (Question to Finance)

I have been advised by NAMA that asset disposals in 2012 of €2.8 billion comprise €2.3 billion from the sale of property collateral secured against loans and €0.5 billion from loan sales.