NAMA takes up battle to rent out Grehan's assets

Emmet Oliver

June 29 2011 04:46 AM

The receivers to developer Ray Grehan's Glenkerrin group have submitted a business plan to NAMA about managing the diverse set of assets, with most being held purely for letting in the current market.

The receivers are working for NAMA and are responsible for getting as much rental income in as possible.

A large banner advertising letting opportunities covers Mr Grehan's former Grange development in Stillorgan, Dublin, but the letting there is believed to be heading towards full occupancy, although older internet advertisements suggest that 2,566 sq m at 'The Offices @ the Grange'' have to be filled.

However, the former UCD veterinary site, which houses a car park, is not likely to be utilised for any property development in the immediate future.

There had been suggestions NAMA would submit a fresh planning application for the site, involving a much smaller development than originally planned by Mr Grehan.

The receivers -- Grant Thornton -- have told the agency they will concentrate purely for now on maximising income above selling assets.

It is not known how much NAMA paid for the Grehan loans, but NAMA has sold few assets in Ireland, preferring instead to off-load properties in the UK market where values have held up better.

Targets

Property sources described NAMA's approach as "sit and hold'' in relation to Irish properties, although consideration at board level to setting up a Real Estate Investment Trust is continuing.

Another batch of developers have until July 31 to get their business plans submitted to NAMA and if these are accepted then the developers will be able to sign a term sheet with the agency, which binds them into hitting debt-reduction targets over a five- to seven-year period.

Despite its reputation for taking aggressive enforcement action, NAMA has actually turned down 31 applications from the bank to take action.

"Such decisions typically arose where NAMA believed further analysis should be done in respect of a particular debtor or where NAMA believed that there were other options which should be explored before considering enforcement,'' chairman Frank Daly said recently.