Nama’s end of year review has suggested that the agency has made significant progress highlighting in particular some €10.5 Billion cash realisations from both asset disposals and non disposal income such as rent. NAMA has made debt repayments totalling over €5 billion to date, and remains firmly on course to hit the senior bond redemption target of €7.5 billion by the end of 2013.
NAMA have been widely commended for their balancing act of generating cash flow from the disposal of assets, while preserving value.
The report also highlighted that whilst there was major interest in NAMA assets the inaccessibility and cost of finance both in Ireland and abroad was limiting disposals. The statement which outlines financial stratergies going forward to 2013 outlined a number of ways to tackle the lack of liquidity that they was limiting NAMA activity in the market. These measures, some of which have already been introduced, include a vendor finance programme under which loan finance of up to 70% of the purchase price is available to suitable purchasers and the Deferred Payment Initiative (DPI) offers limited price protection to buyers for five years. It has been offered on a pilot basis for a small number of properties, but it is expected to be extended in 2013.
Commenting on the results, NAMA Chairman Frank Daly said that that “Performance on a number of key targets during the year, in conjunction with growing indications that the Irish commercial and residential markets are stabilising, reinforces our confidence that we will achieve our ultimate objective of completing our work by 2020”.