Ireland’s National Asset Management Agency plans to invest €2bn (£1.6bn) in the completion of existing real estate projects and the development of greenfield sites.
According to an announcement this morning by the agency’s chairman, Frank Daly, the plans to develop greenfield sites are in anticipation of future supply shortages in certain segments of the market, such as large offices.
The investment could create up to 25,000 jobs in construction, and a further 10,000 in the wider economy, he said.
The Nama Act, passed in 2009, had anticipated that the agency would provide as much as €5bn to developers to finish existing projects.
Daly added that he was confident about the potential of Nama’s loan portfolio: “Our view is that long-term prospects for much of this property are good.
“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 said.
Nama plans to launch at least one qualifying investor fund (QIF) this year in order to attract investment from large institutional investors, Daly said.
This follows its announcement in February that it is going to set up a series of funds to allow investors to buy a stake in some of the distressed assets under its control.
At this time, Nama said it aimed to set up several funds in 2012, the first of which was likely to total less than €500m.
Since its formation, the agency has bought in more than €71bn of development and investment loans.
The funds will either buy assets that have been put into administration or receivership for which Nama is now the lender, or assets that the existing borrower agrees to sell to the fund.
sophiafurber@estatesgazette.com
