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LESS THAN 7% of Nama’s €17.5 billion in fire-sale assets have gone to Irish buyers – and the bad bank’s boss has admitted there’s nothing he can do if offshore vulture funds wanted to pull apart local businesses.
National Asset Management Agency (Nama) CEO Brendan McDonagh today told a Oireachtas Finance Committee meeting that only 6.9% of its total asset sales, which are made up of both loans and properties, had gone to domestic buyers.
He said US buyers had snapped up nearly 90% of the massive portfolio and it was probably true that the “vast majority” of those purchases had gone to private-equity funds.
“The majority of the (money) coming in to buy assets from Nama is US based,” he said.
“There are some big individuals who are buying assets in their own name, and they are obviously very rich, but the majority are funds.”
He said that 3.5% of the total portfolio went to German buyers and 1.2% was bought with UK funds.
About two thirds of Nama’s total portfolio was for assets in Ireland, with the majority of the remainder in the UK – primarily in Northern Ireland.
Buyers could ‘asset strip’ Irish businesses
Under questioning from Fianna Fáil finance spokesman Michael McGrath, who asked what Nama would do if a purchaser planned to “asset strip” an existing Irish business that was linked to one of the loans, McDonagh said the agency’s job was to get the best returns it could on sales.
“We haven’t seen any buyer to date that has told us they wanted to buy a business and engage in asset stripping,” he said.
“We have to take the commercial view that once we sell the assets whatever the buyer is going to do with it is up to him because he’s paid for it.”
Several major overseas private-equity firms, including US-based Blackstone and Cerberus Capital Management, have bought up big packages of Nama-owned debts.
A profit within three or four years
In its policy statement for next year, Nama bosses said the stronger property market meant it was likely to wind up earlier than expected – possibly by late 2017.
The bad bank has forecast it would at least break even on the billions in taxpayer funds that had been sunk into it to buy up loans from ailing lenders during the financial crisis.
Today, when pushed to put a figure on its final performance, McDonagh said he was expecting a profit of ”somewhat less than €500 million” after it shut down all its operations.
In a separate statement, Nama said it had now repaid half of the €30.2 billion in senior debt it had issued to buy up loans and that it was on track to pay back 80% of the debt by 2016.
If only the kitchen was slightly bigger.
Yeah, I was considering buying it till I saw that. I mean, what’s the point in buying a house where me, Mr Shalakalananaka, my 15 kids, my 36 kids, my great-grandkids and my cats can’t all spin around like helicopters in the kitchen without touching each other and knocking over dishes?
wifi is awful in these places. walls are too thick for a decent signal. does my head in. ill never live in a castle again
I don’t get the red thumbs, I was being genuine.
Mrs Shalakalananaka, if you want us to believe you’re genuine telling us you have 51 kids isn’t the way to go about it!
15 kids
You backwards reading twit …. And that’s no way to speak to a lady.
“my 15 kids, my 36 kids” add em together you’ve got 51
Nice save hardly !! Nice save indeed.
thank’s nelg !!
Oh feckballs, I meant 36 grandkids. 51 kids, Jesus, I couldn’t think of anything worse. xD The 15 I have are bad enough (only messing, I love my little angels!).
Thank you for looking out for me, Glen. You are a true gentleman, rare in this day and age, but no less adored. <3
Glen, every single story you post. Go get a pint or something, jeez…
So what, he can post if he wants Chinaski. No need to be a biznatch about it.
i’m buying it on wednesday after i win the euromillions on tuesday…
Id buy to let it out only the law now says ive to accept rent allowance
The broadband is dial up though, or eircom as it’s known
If I won the Euro lotto I would by it.
Yeah very nice but how many bedrooms? I’ve a family to consider.
Dunno why you’d bother when for just a million more you could have a 4 bed semi-d with on street parking in south county Dublin
nice place for someone deserving
Not even one topic,not even one !!!!!!.
you appear to be upset about something mike?
Yeah Mike what’s upsetting you Mike ;)
they mustnt take rent allowance…
Oh look,the other cheek of the arse.
The circle is complete.
you must have the mother of all hangovers mike your like a briar :D
That’s how harry price likes him
I actually hope Mr Price takes my advice and reports you to twitter with a view to suing you for bullying and slander.
You really are a clown aren’t you.
I hope he does too :)
who exactly am i supposed to be bullying and slandering? why do you have to persistently insult people. you don’t agree with me, i get it, that is your choice, but disagreeing isn’t enough for you you have embarked on some personal vendetta and are now ranting about slander and other such nonsense.
I’m not talking about you , you overestimate your importance on the planet.
You gillwhoever are nothing but a mild irritation.
Cool, I was just asking
have your say