Nama is on the hunt for investors as it signals an increase in activity in 2012.
In its annual statement for the year ahead released today, the Irish agency said it intends to establish “mechanisms to attract international investor capital, such as qualifying investor funds” this year.
Last week Nama started seeking proposals for investment management services for one or more QIFs it is expected to set up.
According to the Irish Funds Industry Association, a QIF is a regulated, specialist investment fund targeted at sophisticated and institutional investors, who must meet minimum subscription and financial resources requirements.
It was reported in the Irish Times that the minimum investment in a QIF will be €250,000 (£208,000) and that individuals will need to demonstrate a net worth of €1.25m or in the case of companies, the company will need have a net worth of €25m.
It confirmed loan sales will also be on the agenda, listing “adopting an active strategy and establishing a panel for selling loans” as one of six key priorities for 2012.
Two further objectives for 2012 include the development of the deferred mortgage initiative for residential properties, and the roll out of vendor finance on the commercial property portfolio.
In order to generate sales transactions and to attract new equity into the Irish market, Nama is willing to provide up to 70% vendor debt finance to purchasers of Irish commercial property which is either under the control of its debtors or of receivers engaged by it.
It said that with financial institutions reluctant to underwrite lending to property, its initiative is intended to address the serious liquidity constraints faced by the commercial market over recent years.
Nama has also received approval from the minister for finance to launch an initiative aimed at generating residential mortgage transactions. Consultations are taking place with the EU commission which is reviewing the initiative from a state aid perspective.
It has also pledged to ensure the implementation of schedules for asset sales that have been agreed with debtors, and optimise cashflow to Nama from loans and debtors with a view to paying down 25% of the agency’s debts (€7.5bn) by the end of 2013.
The annual statement for 2012 was published alongside Nama’s third-quarter results, which reveal the agency generated more than €1.4bn net cash after receiving €1.8bn from borrowers over the three months to the end of September.
It repaid €500m of debt and advanced €71m to developers to enable them to complete projects and fund working capital, and paid €199m in interest, expenses and other costs in Q3.
Profit during the third quarter was €317m. Cumulative profit for the first nine months of 2011 was €526m.
Nama had total cash balances of €1.9bn at the end of September.
The percentage of performing loans in the portfolio at the end of September was 21%, down from 23% in the previous quarter. This was largely due to the disposal of a number of income-generating assets.
It also said that a consolidation of the receivership of properties within the Liam Carroll Group has taken place and Deloitte is now the sole receiver.
bridget.o’connell@estatesgazette.com
