NAMA keen to revive property market
Published 12/04/2011 | 11:54
State-owned "bad bank" NAMA is looking at ways it can lend to kick-start the devastated property market.
The agency said it is exploring options to provide finance for commercial and residential deals but only at the low prices people are willing to pay.
Frank Daly, head of the National Assets Management Agency (NAMA), claimed getting funding to prospective buyers was very much part of its brief.
"Many sellers may still retain unreasonable expectations of the prices that can be realised for the foreseeable future," he said.
The NAMA boss said the only way the four-year long property market collapse can be reversed is if buyers are allowed to dictate the prices.
The Central Bank has warned that house prices would come down by about 60pc from the peak at the end of 2006 and start of 2007, with a fall of about 14pc this year alone.
But Mr Daly warned that the market level should be set "at whatever prices buyers are currently willing to pay".
The NAMA chairman also told the newly-formed Society of Chartered Surveyors Ireland - which now represents 4,000 auctioneers, valuers and surveyors - that the 30 biggest property developers whose loans have been taken over by NAMA will shortly face further enforcement.
He warned that speculators face further action if business plans are not viable or they try to prolong the process as much as they can while not dealing with the issues.
NAMA has acquired €72bn worth of loans from the main banks in the names of major property developers.
There is an end of April deadline for the submission of business plans by a second tier of 145 debtors who owe €34bn.
Mr Daly added that if they do not stick to the date NAMA "will not indulge them further".
The so-called bad bank also expects to approve further significant transactions after buyers bought €2.7bn worth of property from its books in the last year.
The most high-profile was Google`s purchase of the Montevetro Building in Dublin.