Tuesday 22 October 2019

NAMA may bundle loans into a trust and list it on London SE


Emmet Oliver

NAMA has hinted once again it may put a substantial portion of its giant €30bn loan book into a trust that could list on the stock exchange.

Several of the UK's largest property companies have already adopted this structure, known as a Real Estate Investment Trust (REIT), but it is understood NAMA would need a change in legislation to allow it to become a REIT.

Brendan McDonagh, chief executive of the agency, said NAMA was studying the idea.

"If the legislation was there, we'd certainly look at doing a mortgage REIT," said Mr McDonagh, speaking to the 'Financial Times'. "The market in the US has been a great success over the past few years and the structure of the mortgage REIT would suit us."

The REIT structure means that investors can buy shares in their companies without owning properties directly. The investors have a right to the income of the properties.

The key consideration for NAMA is how much its assets would be sold into the market for. The agency has a long-term plan to at least break even on its outlay of €30bn for the loans it bought from Irish banks.

Mr McDonagh did not say how much of the NAMA portfolio could be packaged up into a REIt, but dismissed suggestions NAMA could soon be sold off entirely.

Irish Independent

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