NAMA funds Ballincollig completion with €20m
State-controlled NAMA is providing €20m to one of its biggest debtors to finance construction of a retail centre in Ballincollig in Cork, the Irish Independent has learned.
The news comes after planning permission was granted for an extension to the Ballincollig Shopping Centre in Cork. Retail giant Tesco is lined up to be the anchor tenant.
The centre is being developed by O'Flynn Construction. It is thought to be one of NAMA's "top" borrowers with debts of as much as €1bn with the state-controlled bad bank.
O'Flynn Construction was one of the country's biggest developers during the boom. The fact that NAMA is now backing one of its projects with fresh cash is a signal that the Cork firm is seen as a co-operative debtor by the agency.
The company says it expects the project to generate 150 construction jobs and a further 200 permanent jobs once stores open. Building is scheduled to kick off next September.
The Ballincollig scheme is the latest shopping centre deal to receive financial backing from the National Asset Management Agency (NAMA) since it announced a target to release €2bn to developers and receivers to finish developments stalled when the property market collapsed.
Similar initiatives have already been launched in Dublin. In May, NAMA said it would fund a €13m extension of the Charlestown Shopping Centre in north Dublin, which is being developed by the Bailey brothers.
NAMA is also supporting a €75m retail development in Carrickmines, Dublin.
Yesterday Michael Noonan said that investment by NAMA is unlike other government spending because the cash can be used again and again.