Dáil Éireann Debate, Thursday - 16 July 2015
154. Deputy Michael McGrath asked the Minister for Finance the amount of vendor finance that has been provided by the National Asset Management Agency in 2015 to date; the number of projects financed; the number of housing units that will be provided by these projects; and if he will make a statement on the matter. [29752/15]
View answerI am advised by NAMA that it has to date advanced €373m in vendor finance across six transactions involving the sale of commercial property securing its loans. These transactions have involved the sale of completed office and retail accommodation and therefore the Deputy's reference to housing units does not arise.
As previously advised by NAMA, a number of positive market developments in the past year or so mean that vendor finance is not currently required as part of its market offering. These developments include the prevalence of international investors and international debt providers with ready access to capital, the introduction of Irish REITs as an alternative investment mechanism and a gradual increase in domestic bank lending to property. Vendor Finance was introduced by NAMA in 2012 in a very different market and financing context and was one of a range of measures introduced by NAMA to encourage investment in Irish property at a time when there were few transactions in the market and when there was limited finance available.
