NAMA to invest €2 billion in Ireland over next four years
The National Asset Management Agency has announced proposals to invest €2 billion in Ireland over the next four years.
NAMA chairman Frank Daly said the investment could generate 25,000 jobs in construction and an additional 10,000 jobs in the wider economy.
Mr Daly said he was cautiously optimistic about the property market.
He said that more and more indications are emerging that the economy, and with it some important segments of the Irish property market, has turned the corner.
”In some market segments – large offices for instance – supply shortages are already emerging and we plan to address that now,” the NAMA chairman said.
The planned €2 billion investment was announced at a business breakfast in Galway city this morning.
The money will be used to complete commercial and residential projects and to develop future greenfield sites.
The agency said the move is in anticipation of future supply shortages in some market segments.
Mr Daly said that 90% of the agency’s Irish property assets were located in the greater Dublin area and in Cork, Limerick and Galway. He said the agency’s loan portfolio has more potential that was originally expected.
“Our view is that long-term prospects for much of this property are good,” Mr Daly said. “On that basis, we propose to invest, particularly over the next three years, with a view to ensuring that this property is available to meet commercial and residential demand over the rest of the decade,” he added.
NAMA also said today that it will also launch at least one Qualifying Investor Fund this year, to attract big institutional investors such as pension funds and sovereign wealth funds, to buy properties on a phased basis.
With regard to residential mortgages, the agency said the 80:20 deferred payment initiative had generated €8.4m since the pilot phase was launched two weeks ago. Rental income is being generated from over 9,000 residential units.
Mr Daly also said today that the agency has already committed more than €500m in new working capital and development capital advances for projects located in Ireland.
The NAMA chairman said that the agency will not achieve its objectives by just relying on the disposal of property. He said NAMA must invest in the assets securing its loans so as to make them more attractive to purchasers over a medium term horizon.
“Part of our role is to respond, not just to current supply and demand conditions, but also to prospective supply and demand over our projected lifespan up to 2020,” he added.
Source: RTE
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