NAMA to insure 'copters boats, cars in its portfolio
Published 08/11/2011 | 05:00
Boats, helicopters, cars, livestock, jewellery and machinery are just some of the items NAMA is seeking to insure as part of its €72bn portfolio.
The agency, set up in December 2009, is preparing to award one of the largest single insurance contracts in the State, and is seeking to insure a wide range of assets it has effectively seized or taken control of since then.
The breadth of the property NAMA now owns is revealed in the scope of the contract terms. From repossessed properties to brownfield sites to hospitals to nursing homes to pubs to restaurants, the agency has almost unique needs as an insurance client.
In terms of non-real estate assets, the agency has seized (or taken control of) boats, private jets, plant and machinery, helicopters, jewellery, livestock, art and cars.
The new company will handle getting insurance for these items at cost-effective rates.
The company awarded the contract will also make sure the banks are insuring their assets at appropriate rates.
The company will also be expected to report on any insurance risks, including uninsurable risks.
The insurance costs are included in NAMA's annual expenses which are expected to come to over €130m this year, with loan administration by local banks believed to be the biggest overhead.
A UK company, Capita, also shares some of this money.
While the contract winner will have specific duties to carry out for NAMA, the agency has told all potential providers they may have to take on ad-hoc projects that are beyond the strict conditions of the contract.
NAMA is currently selling a large amount of UK assets as it begins to start hitting debt-reduction targets. However, it has ruled out selling assets in large portfolios.
Potential changes to the upward-only rent clause rule in Ireland has placed a cloud over its chances of recovering money from its Irish assets.
However, staple finance deals -- where the agency funds buyers itself directly -- are near completion and the agency hopes this will bolster its attempts to shift assets.
The company has also been taking enforcement actions recently, including against developers overseas.
Developer and former IRA hunger striker Tom McFeely found himself facing receivership proceedings last week for an asset in East London.