Development land 'unsaleable' at present, NAMA staff told
Published 15/09/2011 | 05:00
NAMA staff have been told to tell the agency's top borrowers there is no point in trying to sell development land because its "not currently saleable", a document seen by the Irish Independent shows.
Major developers are currently trying to pay down their debts, but the agency's staff have been told to make it clear that selling development land is a waste of time at this point of the property downturn.
The staff are told in the document: "Make practical recommendations regarding disposals, eg development land not currently saleable."
The staff are also told to be "very selective" about giving developers fresh working capital, with developers only getting fresh funds if they have already lined up tenants or purchasers for the properties involved.
The document makes it clear how developers are to be assessed: "Capability and co-operation are key."
The business plans from developers have to be realistic with little emphasis to be placed on "interest or debt forgiveness".
"Full disclosure is an absolute requirement -- sworn statements of affairs to include unencumbered assets and identify transfers in the past five years," the agency makes clear.
"Make sure who you are dealing with and who is representing who,'' staff are advised. Each developer has several legal entities and structures, the document also makes clear.
NAMA is working on a range of initiatives to speed up its sales process -- it is looking at hiring loan sales brokers to sell off assets for a commission and the sale of entire apartment blocks is also being considered.
This week the agency's dealings with developer David Daly were revealed, showing that NAMA is seeking to reverse transfers undertaken by Mr Daly.
A group of court cases by NAMA about asset transfers to wives are also imminent, it is understood.
Some developers are simply refusing to reverse transfers of assets, said NAMA chief executive Brendan McDonagh last week, although he refused to name the developers in question.