NAMA publishes 2019 year-end review

NAMA has today (6^th January 2020) published an end-of-year progress report on the delivery of its key objectives and targets in 2019, and since its inception. 2019 highlights include the following:

• NAMA generated over €1.3 billion cash in 2019. Since inception, the Agency has generated cash in excess of €45.3 billion from its operations.

• The Agency forecasts that it will deliver a projected terminal surplus of €4 billion to the Exchequer, subject to prevailing market conditions. The first €2 billion is expected to be transferred in the second half of the current year (2020).

• NAMA’s residential delivery programme continued to facilitate the delivery of housing across Ireland throughout 2019. In total, over 16,800 homes have been directly or indirectly delivered through NAMA funding.

This figure consists of:

• 11,700 units funded directly by NAMA
• 5,100 units completed on sites sold by NAMA debtors or receivers which benefitted from NAMA asset management and/or funding relating to planning and enabling works or legal and holding costs.

• To date, NAMA has delivered over 2,600 social housing units to local authorities and approved housing bodies. This figure excludes additional units provided under Part V arrangements on NAMA-secured sites.

• NAMA has continued to make significant progress in facilitating the delivery of commercial office space and residential units in the Dublin Docklands SDZ, which, on completion, will deliver 4.2million square feet of commercial space and2,183 residential units across 15 original NAMA-related sites. By December 2019, less than 30% of NAMA’s interest in the Dublin Docklands remains under construction, with the other 70% now complete or sold.

• NAMA commenced the process to seek an investment partner for the development a large portion of the Poolbeg West SDZ which has potential to deliver 3,500 residential units and 1 million square feet of commercial space.  

CASH GENERATION AND PROFIT

€1.3 billion cash was generated through NAMA’s disposal and portfolio management activities in 2019. A cumulative €45.3 billion in cash has been generated since the Agency’s inception, primarily through asset and loan sales.

NAMA continues to generate profits from a greatly reduced loan portfolio.

PROJECTED SURPLUS AND OUTSTANDING OBLIGATIONS

In May 2019, NAMA announced an increase of €500 million to the projected terminal surplus, with €4 billion expected to be transferred to the Exchequer, subject to market conditions prevailing.

The first payment of the surplus is expected to be delivered in the second half of the current year (2020), following the repayment of the last of NAMA’s remaining subordinated debt (€1.06bn) and its private equity obligations (€56m).

With these repayments, NAMA will have extinguished all its senior and subordinated debt obligations, which stood at €31.8 billion at inception (comprising €30.2 billion senior debt, the last of which was redeemed in 2017, and €1.6 billion in subordinated debt).

RESIDENTIAL DELIVERY

Through its Residential Delivery programme, NAMA continued to work with its debtors and receivers to fund and facilitate housing units across NAMA-secured sites, where commercially viable. The number of housing units delivered directly by NAMA’s residential delivery programme since 2014 exceeded 11,700 by end 2019. A further 5,100 units have been delivered on former NAMA-secured sites which benefitted from NAMA asset management and/or funding. Therefore, a total of 16,800homes have been delivered and facilitated through NAMA funding.

In addition, NAMA’s current residential pipeline totals 27,650 units including:

•   5,500 construction-ready units
•   12,550 units currently in the planning process
•   9,600 units in the pre-planning and feasibility stage. 

SOCIAL HOUSING DELIVERY

NAMA has delivered over 2,600 residential units from its secured portfolio to local authorities or approved housing bodies for social housing purposes across Ireland. These residential units have provided homes for over 8,000 people. Over half of these units were delivered via NAMA’s social housing vehicle, NARPS.

Over €350 million has been invested for the remediation or completion of properties or for the purchase of properties for social housing use. 

DUBLIN DOCKLANDS SDZ AND POOLBEG SDZ 

With the commencement of construction at 10-12 Hanover Quay, in February 2019, all remaining NAMA-secured sites in the Dublin Docklands SDZ are now under construction, complete or sold. Since 2014, NAMA has made considerable progress in delivering commercial and residential space in the Dublin Docklands. On completion, a total of 4.2million square feet of commercial space and 2,183 residential units will be delivered which has played an important role in attracting and enabling foreign direct investment to Dublin.

The Poolbeg West SDZ Planning Scheme was formally adopted by An Bord Pleanála in April 2019. NAMA owns a significant portion of the SDZ area and is currently seeking an investment partner for the development of the site. The site has potential to deliver 3,500 residential units (including 10% Part V and 15% social and affordable), 1 million square feet of commercial and retail space, a school site and cultural, community and public open space.

Aidan Williams, Chairman of NAMA, said:

“My appointment as Chair of the NAMA Board in December 2019 coincided with the end of another year of strong performance by the Agency. 2020 will bring significant new milestones for NAMA. We will redeem the last of our remaining subordinated debt and our private equity obligations and, in the second half of 2020, commence the payment of our terminal surplus to the Exchequer. I would like to take this opportunity to recognise the significant contribution made by the former Chair, Frank Daly. His leadership, drive and dedication to NAMA have been instrumental in making the Agency a success and in contributing to generating a substantial surplus for the State over its lifetime. I look forward to leading NAMA through the final phase of its work.”  

Brendan McDonagh, Chief Executive, said:

“2019 was a successful and notable year for NAMA. In May, we increased our projected terminal surplus to €4 billion, in October our cash receipts since inception exceeded €45 billion and December marked a decade since the Agency was established. We continue to work towards our strategic objectives, particularly regarding residential delivery, where we have funded the completion of 11,700 new residential units since 2014 and in our work in the regeneration of the Dublin Docklands SDZ, facilitating significant investment to the area. We are also confident of securing a strategic partner for NAMA’s 80% equity interest in Project Pembroke in 2020.”