UK property recovery bodes well for sales of €19bn NAMA assets
THE sale of a prestige property in central London by the National Asset Management Agency (NAMA) is a useful example of the confusing processes of the NAMA operation, and an encouraging sign of how things might work in the end.
NAMA buys development loans from the banks, at a price which is meant to reflect the chances of the loan being repaid and the value of any security pledged against the loan. In this case, the loan was for almost €300m from Michael Fingleton's Irish Nationwide to buy the property, but, for whatever reason, was valued at €150m when NAMA took it over.
Now, the UK consortium has sold the property for €300m and repaid the loan in full. This reflects the sharp recovery in London property prices and represents a €150m profit for NAMA.