Section 10 of the NAMA Act requires NAMA to obtain the best financial return for the State from the sale of loans and the sale of properties that secure its loans. Consistent with this mandate, NAMA has demonstrated its commitment and contribution to the achievement of wider social and economic policy objectives by giving first option to public bodies on the purchase of property which may be suitable for demonstrable public purposes and by facilitating engagement between interested parties, including community and sporting organisations, and its debtors and receivers in respect of land and property.
All transactions, whether they arise from NAMA's policy of affording public bodies first option on the purchase of property or through its facilitation of engagement between interested parties and its debtors and receivers, must be at market value. I am advised by NAMA that, in the case of transactions with public bodies, sales are progressed on the basis of independently assessed market value. Transactions more generally are conducted on the basis of open market sales processes.
As an example of its engagement with public bodies, NAMA has to date made over 6,500 residential units controlled by its debtors and receivers available for social housing. I am advised by NAMA that Local authorities, working through the Housing Agency, have confirmed demand for approximately 2,500 of the 6,500 properties made available by NAMA. Over 2,100 of these 2,500 properties have already been delivered for social housing. To put this contribution in context, the properties delivered by NAMA through its debtors and receivers for social housing equate to more than one-third of total Part V social housing provision between the years 2002 and 2011 when over 500,000 private housing units were built in Ireland.
NAMA also facilitates the sale of land and properties to public bodies for the provision of schools, health care facilities and other public uses. For example, there has been continuous engagement between NAMA and the Department of Education and Skills in respect of potential school sites in areas of high demand. I am advised that, as a result of this engagement, over 25 potential sites for schools have been identified by NAMA to date and are being progressed for sale with the relevant parties. I am further advised by NAMA that the sale processes in such instances are in line with NAMA's derogation from open marketing, as outlined above.
NAMA also works with IDA Ireland to facilitate significant property transactions that might not otherwise have taken place by offering structured engagement between its debtors and receivers and potential new investors. In this regard, NAMA has facilitated commercial transactions involving, amongst others, Facebook, Linkedin, Google, Eli Lilly, Kerry Group, Novartis, Amazon, BskyB, AdRoll, Airbnb, Bristol Myers Squibb, Yahoo and Scottish and Southern Energy (SSE). NAMA's work in this area is extremely important in terms of facilitating businesses wishing to establish or expand operations in Ireland.
Where community groups have an interest in land or property that may secure NAMA's loans they should make direct contact with the owners of that land or property, where ownership is known. Alternatively they can make their interest known to NAMA and, while noting that NAMA is prohibited by its legislation and by the normal rules of banking confidentiality from disclosing the identity of debtors or details of their properties, the Agency will ensure that the relevant debtor or receiver is aware of the interest and will encourage them to engage with the potential purchasers.
NAMA has published an information guide, which is available on its website, https://www.nama.ie/fileadmin/user_upload/2877_About_NAMA_A4_Brochure_FINAL.pdf for community organisations and others who may have an interest in properties controlled by NAMA debtors and receivers.
