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NAMA Property Sales

Dáil Éireann Debate, Tuesday - 8 July 2014

Tuesday, 8 July 2014

Questions (181, 182)

Stephen Donnelly

Question:

181. Deputy Stephen S. Donnelly asked the Minister for Finance further to the report in a Sunday newspaper that the National Asset Management Agency sold a warehouse in Dublin, which is generating €750,000 in rent per annum from the Revenue Commissioners, for a price of between €2 million and €4 million, after NAMA obtained an assessed market value, if NAMA will confirm the terms on which it obtains assessed market valuations; the amount it pays for such valuations; the persons who provide such valuations; if such valuations adhere to valuing standards of the Royal Institution of Chartered Surveyors; and if he will make a statement on the matter. [29467/14]

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Stephen Donnelly

Question:

182. Deputy Stephen S. Donnelly asked the Minister for Finance further to the report in a Sunday newspaper that the National Asset Management Agency sold a warehouse in Dublin, which is generating €750,000 in rent per annum from the Revenue Commissioners, for a price of between €2 million and €4 million, if he has any concerns that the asset was sold for less than its open market value. [29468/14]

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Written answers (Question to Finance)

I propose to take Questions Nos. 181 and 182 together.

Whilst I am precluded from discussing the detail of any individual transaction, I am advised by NAMA that the Deputy's information on the price at which this asset was sold is incorrect. To clarify, NAMA did not sell the property in question. The property was sold by its owner and NAMA, as secured lender, consented to the sale. The salient facts are that Dublin Port Company (DPC) had a shared legal interest in the property and built-in pre-emption rights in respect of the legal interests held. Given the existence of these legal rights and DPC's expressed interest in acquiring the property, the only commercially viable option was the sale of the property to DPC. I am advised that the final sale price was the result of extensive negotiations, was in line with market valuations at the time of the transaction and was the best price that could be achieved given the particular circumstances of the asset.

In addition, I am also advised that the sale proceeded in accordance with the NAMA Board commitment to give first option to State bodies (Government departments, local authorities, State agencies and other statutory bodies) on the purchase of NAMA-related property which may be suitable for their purposes. This is fully in line with Government policy. In accordance with that Board commitment, NAMA has accommodated the sale or lease of lands and properties for a range of public uses, including, for instance, for social housing, primary and secondary schools, primary healthcare and other step-down and community healthcare facilities, and for community and recreational amenity. I fully support the NAMA Board in this approach.

As a secured lender, before NAMA agrees to release its security it makes all necessary enquiries to ensure that full value is obtained in the interest of taxpayers. NAMA has published guidance on the 'Disposal of Real Estate Assets by NAMA Debtors and Insolvency Office Holders'. This is available on the NAMA website, www.nama.ie. I refer the deputy to PQ no. 206 of the 17th of June 2014 which outlines the valuation methodology applied by NAMA.

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