Business Irish

Saturday 18 November 2017

Receivers enjoy five-fold rise in fees to €10.3m for NAMA work

235 appointments made to 176 debtor properties

Gordon Deegan

New figures show that receivers last year secured a five-fold increase in fees to €10.3m for their work on National Asset Management Agency-related assets.

According to Finance Minister Michael Noonan, the costs to NAMA of appointing receivers to NAMA-related properties increased from €2m in 2010 to €10.3m last year.

Mr Noonan said that NAMA appointed 35 receivers in 2011 and this followed the agency appointing 58 receivers in 2010.

Mr Noonan confirmed that 19 receivers have been appointed by NAMA to date this year.

In a written parliamentary response to Fianna Fail's finance spokesman, Michael McGrath, Mr Noonan said: "I am advised by NAMA that fees are not paid to receivers directly by banks or NAMA rather they are paid out of the proceeds of assets under receivership or the management thereof pending realisation.

He added: "Costs incurred through receiver appointments by participating institutions are currently being collated but are expected to be materially less."

Mr Noonan said: "NAMA advises that to the end of June 2012, 235 receiver appointments had been made to 176 separate debtor connections. There are a number of connections to which more than one receiver firm is engaged which explains the difference between appointments (235) and connections (176).

Institutions

"NAMA advises that this predominantly occurs in situations where debtors have assets in two or more jurisdictions, giving rise to at least two separate appointments, or in instances where a combination of corporate and fixed charge receivers are used depending on the asset type and legal security."

Mr Noonan said that the numbers of receivers appointed by participating institutions, including AIB, Bank of Ireland and the Irish Bank Resolution Corporation (IBRC), was 79 in 2010, 38 in 2011 and six in 2012.

He added that NAMA had selected 30 separate firms in respect of its 112 appointments since 2010.

In a separate parliamentary response on NAMA, Mr Noonan confirmed that the income arising from the rental by state bodies of about 82 NAMA debtor and receiver properties was of the order of €30m per annum.

In a written response to Deputy Pat Deering (FG), Mr Noonan said: "NAMA advises that 48 properties are located in Dublin and the neighbouring counties of Wicklow, Kildare and Meath; these account for 76pc of total annual rental income.

"There are 24 properties located in counties Limerick, Cork and Galway and these account for a further 21pc of total income. The residual 10 properties are located throughout the rest of Ireland and account for 3pc of rental income."

Irish Independent

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