NAMA boss says agency will make €600m profit this year
THE head of the National Asset Management Agency (NAMA) said it has so far signed off on sales worth €6.2bn, and will make a profit of €600m this year.
The comments from NAMA boss Brendan McDonagh come just a day after publication of the Geoghegan Report into NAMA by ex-HSBC banker Michael Geoghegan, which said the agency should become more "entrepreneurial" in how it managed and sold assets.
Mr Geoghegan's report was mostly supportive of NAMA, but said the toxic debt agency could be proactive and externally focused to help maximise its return over the long term.
Yesterday, Mr McDonagh said that NAMA had already raised over €5bn in cash through asset sales, and had signed off on €950m in new loans to finish projects. NAMA will repay €2bn of debt by the end of the year, and is on course to make an operating profit, he said.
Mr McDonagh made his comments in London at a conference organised by Davy Stockbrokers and attended by around 70 international money managers and property investors. He painted a picture of rapidly increasing momentum at the agency when it comes to taking over and selling off assets.
Sales worth €4.3bn were announced between January and October, compared to just under €2bn of sales in 2010, he said. NAMA has taken control of properties through 63 insolvency appointments so far this year, up from 30 in 2010, he said.
The toxic debt agency controls properties worth in the region of €30bn through loans it took over from Irish banks.
The loans have a face value of €62bn.