RAY Grehan's decision to declare bankruptcy in the UK in the dying hours of 2011 shouldn't have taken Nama by surprise. But it did.
Today, Mr Grehan -- who famously paid €171.5m (a record €84m per acre) at the height of the boom to acquire the Veterinary College site in Ballsbridge -- explains his dramatic move, saying it puts him in a "better position to rebuild, rather than staying on and allowing Nama to prolong the agony with a noose around my neck".
By going for bankruptcy in the UK, the Glenkerrin Homes chief will have a clean bill of financial health by the end of this year. Most significantly, the €300m judgement the State's so-called 'bad bank' obtained against him here last November will not be worth the paper it is written on. And while Mr Grehan understands that there will be public anger, given that this money is owed to the taxpayer, it's an anger he believes is misdirected.
"I did not choose to go into liquidation or receivership. I worked with Nama. I signed a memorandum of understanding with them to work out our assets. We were the best-placed people to do that.
"Had they worked with us, they would have got the bulk of the money back -- probably it all -- over the eight-year plan," he claims.
The Galway-born developer's anger towards Nama becomes clearer when he is asked for his view of its chief executive Brendan McDonagh's announcement that the agency would sell a significant proportion of its UK property portfolio by 2013.
"The minute Brendan McDonagh said they were going to unload their assets in the UK over a two-year period, they wiped probably 20 per cent of the value off that portfolio. All the wealth funds in the world are looking at that.
"London is a very small market and a very specialised market. You can't go in there and put several major assets on the market at the one time. It's a very fickle market and one that you work with very carefully and quietly to sell assets," Mr Grehan says.
Read the article @ The Irish Independent
www.buckplanning.ie
Showing posts with label nama and planning. Show all posts
Showing posts with label nama and planning. Show all posts
Monday, 9 January 2012
Friday, 25 November 2011
Sligo Borough Council wants some of NAMA housing stock
1978 WAS globally known as 'the year of the three Popes' and it looks like 2011 will be known, in Ireland anyway, as 'the year of the three Ministers for Housing.'
Indeed so many houses were built in the past decade the case could be argued for even having three Ministers in post at the one time.
However, when the latest Minister is appointed, he/she will finding waiting a Motion from Sligo Borough Council to reflect the fact that over six hundred people are officially homeless in the Borough.
Considering a report from the Borough Council's Housing Officer at this week's November General Purposes meeting, it also emerged only eight houses have been acquired currently in the long-term leasing scheme, which was recently introduced as national policy.
Read the article @ Sligo Today
www.bpsplanningconsultants.ie
Indeed so many houses were built in the past decade the case could be argued for even having three Ministers in post at the one time.
However, when the latest Minister is appointed, he/she will finding waiting a Motion from Sligo Borough Council to reflect the fact that over six hundred people are officially homeless in the Borough.
Considering a report from the Borough Council's Housing Officer at this week's November General Purposes meeting, it also emerged only eight houses have been acquired currently in the long-term leasing scheme, which was recently introduced as national policy.
Read the article @ Sligo Today
www.bpsplanningconsultants.ie
Tuesday, 25 October 2011
Agency will sell assets below price it paid in 'tactical' move to aid market
NAMA has revealed it would be prepared to sell a small number of assets below what it paid for them -- in a "tactical" attempt to get the property market moving.
However, the agency said reports that it would accept discounts of 10pc were "factually incorrect".
The agency was responding to a suggestion on a NAMA-related blog that it was prepared to live with a 10pc drop on the prices it paid banks for the assets.
The comments about a 10pc markdown were attributed to a senior NAMA executive, John Mulcahy.
But a spokesman for NAMA last night rejected the 10pc figure and said: "NAMA policy remains to sell assets at the best achievable return; our goal is to realise at least the price the agency paid for the underlying assets.
"If there is any exception to that policy, it will be a tactical decision in the interests of stimulating demand in a quiet market. It will certainly not be typical or widespread."
NAMA has about €30bn of assets made up of office space, retail, apartments, houses and undeveloped land in Ireland, the UK and Europe. Mulcahy was speaking to fund managers last week, briefing them on how the agency intends to repay the taxpayer over the next 10 years.
He said NAMA would continue to proceed on a case-by-case basis and was not currently planning to sell off whole loan books, just individual assets.
Meanwhile, NAMA is expected to pay off another €500m of debt before the end of the year, subject to board approval.
The agency is also currently trying to reverse transactions between NAMA developers and their wives and children. The NAMA Act 2009 does give the agency the power to reverse the transfers if the courts believe they were done to put assets beyond the reach of NAMA.
Emmet Oliver
Irish Independent
www.buckplanning.ie
However, the agency said reports that it would accept discounts of 10pc were "factually incorrect".
The agency was responding to a suggestion on a NAMA-related blog that it was prepared to live with a 10pc drop on the prices it paid banks for the assets.
The comments about a 10pc markdown were attributed to a senior NAMA executive, John Mulcahy.
But a spokesman for NAMA last night rejected the 10pc figure and said: "NAMA policy remains to sell assets at the best achievable return; our goal is to realise at least the price the agency paid for the underlying assets.
"If there is any exception to that policy, it will be a tactical decision in the interests of stimulating demand in a quiet market. It will certainly not be typical or widespread."
NAMA has about €30bn of assets made up of office space, retail, apartments, houses and undeveloped land in Ireland, the UK and Europe. Mulcahy was speaking to fund managers last week, briefing them on how the agency intends to repay the taxpayer over the next 10 years.
He said NAMA would continue to proceed on a case-by-case basis and was not currently planning to sell off whole loan books, just individual assets.
Meanwhile, NAMA is expected to pay off another €500m of debt before the end of the year, subject to board approval.
The agency is also currently trying to reverse transactions between NAMA developers and their wives and children. The NAMA Act 2009 does give the agency the power to reverse the transfers if the courts believe they were done to put assets beyond the reach of NAMA.
Emmet Oliver
Irish Independent
www.buckplanning.ie
Thursday, 20 October 2011
Nama offers apartments for Priory Hall residents
THE NATIONAL Assets Management Agency has submitted a list of 332 apartments to Dublin City Council for consideration in rehousing residents of the Priory Hall apartments.
A Nama spokesman said the agency had supplied a list of potential properties in Dublin 13, Dublin 17 and Dublin 11. Nama has been examining housing units linked to loans on its books that might be used to accommodate residents from the 187-apartment complex in Donaghmede who have been evacuated from their homes.
It is understood that the identified sites include 66 units in Belmayne, off the Malahide Road, 12 units in Belmayne Park, 38 units in Clongriffin, and eight units in Clongriffin Town Centre, all of which are in Dublin 13, as well as units in Finglas, Baldoyle and Northern Cross on the Malahide Road.
Last week, the council secured a court order to evacuate the apartments after it was found the buildings contained serious structural deficiencies and posed a fire safety risk.
The Nama spokesman said it was now up to the council to review the list and make contact with the relevant owners or agents to see if it could agree terms. He said that, contrary to recent media reports, Nama was not in position to “simply hand over” properties to the council as it did not directly own them.
Last night, the council said 131 adults and 49 children under 12 had been provided with emergency accommodation in the Regency Hotel, Whitehall.
Approximately 40-50 people remained in the apartment complex ahead of today’s evacuation deadline. The council said it had so far secured 22 housing units, which would be allocated on a “prioritised basis” based on individual family need.
Minister of State for Housing Willie Penrose said he had been in contact with Nama officials yesterday about rehousing the residents. But he said many Nama units may not be suitable.
Meanwhile, Fianna Fail Senator Averil Power has called on all financial institutions that provided mortgages for properties in Priory Hall to freeze the monthly repayments until the development works are completed, saying she understood one bank had already suspended such repayments.
Irish Times
www.bpsplanningconsultants.ie
A Nama spokesman said the agency had supplied a list of potential properties in Dublin 13, Dublin 17 and Dublin 11. Nama has been examining housing units linked to loans on its books that might be used to accommodate residents from the 187-apartment complex in Donaghmede who have been evacuated from their homes.
It is understood that the identified sites include 66 units in Belmayne, off the Malahide Road, 12 units in Belmayne Park, 38 units in Clongriffin, and eight units in Clongriffin Town Centre, all of which are in Dublin 13, as well as units in Finglas, Baldoyle and Northern Cross on the Malahide Road.
Last week, the council secured a court order to evacuate the apartments after it was found the buildings contained serious structural deficiencies and posed a fire safety risk.
The Nama spokesman said it was now up to the council to review the list and make contact with the relevant owners or agents to see if it could agree terms. He said that, contrary to recent media reports, Nama was not in position to “simply hand over” properties to the council as it did not directly own them.
Last night, the council said 131 adults and 49 children under 12 had been provided with emergency accommodation in the Regency Hotel, Whitehall.
Approximately 40-50 people remained in the apartment complex ahead of today’s evacuation deadline. The council said it had so far secured 22 housing units, which would be allocated on a “prioritised basis” based on individual family need.
Minister of State for Housing Willie Penrose said he had been in contact with Nama officials yesterday about rehousing the residents. But he said many Nama units may not be suitable.
Meanwhile, Fianna Fail Senator Averil Power has called on all financial institutions that provided mortgages for properties in Priory Hall to freeze the monthly repayments until the development works are completed, saying she understood one bank had already suspended such repayments.
Irish Times
www.bpsplanningconsultants.ie
NAMA in debt talks with group of private hospitals
NAMA is in crucial debt talks with one of the country's largest private hospital groups which owns Dublin's Mount Carmel, St Joseph's of Sligo and Aut Even in Kilkenny.
Some of the loans taken out by the Mount Carmel Medical Group, backed by developer Gerald Conlan, have transferred into NAMA and discussions are described as being ongoing, with the hospital group trying to refinance the loans.
There is no certainty that these discussions with NAMA will be completed on a "commercially acceptable basis or at all',' states accounts for one of the firms which forms part of the Mount Carmel group.
The directors of the hospital group have cut costs and restructured the business and, with NAMA's support, all liabilities should be met as they fall due.
Defaulted
"The group has defaulted on certain of its bank facilities during the year ended December 31, 2009. The group is dependent on NAMA and its banks to continue to provide loan and working capital facilities and on the success of the group's restructuring plans and cost reduction initiatives,'' said state auditors to the subsidiary.
The group has debts with AIB and KBC and the loans with the former are likely to be the loans gone into NAMA. Security for the loans comes in different forms.
The life insurance policy of the chief shareholder in the company, Gerald Conlan, is among the items that have been assigned to the banks.
The last set of accounts for the main company show it made a loss of €48.6m during the year ended December 2008.
The main driver of the large losses was property and goodwill writedowns of €40m. On the plus side, the company continued to boost turnover.
The deficit in the shareholder's funds of the company came to €65.5m, a huge rise on the previous year.
Emmet Oliver, Deputy Business Editor
Irish Independent
www.buckplanning.ie
Some of the loans taken out by the Mount Carmel Medical Group, backed by developer Gerald Conlan, have transferred into NAMA and discussions are described as being ongoing, with the hospital group trying to refinance the loans.
There is no certainty that these discussions with NAMA will be completed on a "commercially acceptable basis or at all',' states accounts for one of the firms which forms part of the Mount Carmel group.
The directors of the hospital group have cut costs and restructured the business and, with NAMA's support, all liabilities should be met as they fall due.
Defaulted
"The group has defaulted on certain of its bank facilities during the year ended December 31, 2009. The group is dependent on NAMA and its banks to continue to provide loan and working capital facilities and on the success of the group's restructuring plans and cost reduction initiatives,'' said state auditors to the subsidiary.
The group has debts with AIB and KBC and the loans with the former are likely to be the loans gone into NAMA. Security for the loans comes in different forms.
The life insurance policy of the chief shareholder in the company, Gerald Conlan, is among the items that have been assigned to the banks.
The last set of accounts for the main company show it made a loss of €48.6m during the year ended December 2008.
The main driver of the large losses was property and goodwill writedowns of €40m. On the plus side, the company continued to boost turnover.
The deficit in the shareholder's funds of the company came to €65.5m, a huge rise on the previous year.
Emmet Oliver, Deputy Business Editor
Irish Independent
www.buckplanning.ie
Nama set to approve Hatch Hall sale
NAMA IS EXPECTED to give its approval shortly for the sale of Hatch Hall, the former Victorian university hall at Hatch Street in Dublin 2 (pictured). Agents Douglas Newman Good Commercial was recently offered close to the asking price of €6 million after inviting a number of parties to lodge “best bids”.
The estate agent was acting on the instructions of Galway developer Gerry Barrett whose development company Edward Holdings has had its loans transferred to Nama.
Barrett’s bought Hatch Hall in 2004 for €16 million with the intention of turning it into a five-star boutique hotel. The plan was blocked by An Bord Pleanála and he eventually settled for permission to convert it into 36 apartments.
There was intense competition between developers seeking to buy Hatch Hall from the Jesuit order when it was originally for sale near the peak of the property market. Barrett initially got planning approval from Dublin City Council to operate an 81-bedroom hotel on the site by more than doubling the size of the 2,787 sq m (30,000 sq ft) listed building.
This would have involved adding two storeys to the four-storey building along Hatch Lane and the provision of a swimming pool at basement level. It would also have seen the demolition of a section of the three/four-storey building at the junction of Hatch Lane and Hatch Place and replacing it with a seven-storey structure.
The planning appeals board railed against the plan, saying that the changes required to turn it into a hotel would involve alternations to the protected structure to an unacceptable level. It also said the seven-storey addition to the hall would be visually obtrusive.
Barrett subsequently got permission to convert the 83-bedroom student facility into 36 apartments with the option of using the chapel as a health and fitness centre. Hatch Hall dagtes from the early 1900s and was run as a student hall by the Jesuits for around 90 years.
It is currently used as a hostel for asylum seekers. The Department of Justice Equality is due to rent the centre for at least another year at an annual rent of €350,000.
Irish Times
www.buckplanning.ie
The estate agent was acting on the instructions of Galway developer Gerry Barrett whose development company Edward Holdings has had its loans transferred to Nama.
Barrett’s bought Hatch Hall in 2004 for €16 million with the intention of turning it into a five-star boutique hotel. The plan was blocked by An Bord Pleanála and he eventually settled for permission to convert it into 36 apartments.
There was intense competition between developers seeking to buy Hatch Hall from the Jesuit order when it was originally for sale near the peak of the property market. Barrett initially got planning approval from Dublin City Council to operate an 81-bedroom hotel on the site by more than doubling the size of the 2,787 sq m (30,000 sq ft) listed building.
This would have involved adding two storeys to the four-storey building along Hatch Lane and the provision of a swimming pool at basement level. It would also have seen the demolition of a section of the three/four-storey building at the junction of Hatch Lane and Hatch Place and replacing it with a seven-storey structure.
The planning appeals board railed against the plan, saying that the changes required to turn it into a hotel would involve alternations to the protected structure to an unacceptable level. It also said the seven-storey addition to the hall would be visually obtrusive.
Barrett subsequently got permission to convert the 83-bedroom student facility into 36 apartments with the option of using the chapel as a health and fitness centre. Hatch Hall dagtes from the early 1900s and was run as a student hall by the Jesuits for around 90 years.
It is currently used as a hostel for asylum seekers. The Department of Justice Equality is due to rent the centre for at least another year at an annual rent of €350,000.
Irish Times
www.buckplanning.ie
Sunday, 9 October 2011
NAMA land sales offers farmers a chance to expand
As NAMA embarks on selling off some of the thousands of acres that it currently holds in its loan book, a golden opportunity could be presenting itself for farmers with expansion on their mind.
Global trends, such as the growing world population and the emergence of Asian and developing economies, are fuelling growth in the demand for Irish agricultural produce.
The Irish agricultural and food sectors have the quality, brand and reputation to compete globally. However, a major constraint to growth will be the ability to expand, as there is limited availability of additional land.
NAMA presides over one of the largest property portfolios in the world. To date, the State agency has been engaged in a process of reviewing borrowers' business plans, agreeing property strategies for the assets held, and agreeing borrowers proposals for managing the properties and disposals. With the business plan process coming towards an end as this year draws to a close, the next phase of actively managing asset sales will begin to take off.
Span
While NAMA's property disposal strategy is expected to span a number of years, it is likely that land available for agricultural use will come to the market in the next 12-24 months. To date, NAMA has appointed receivers over several borrowers, and the agency recently published a list of 850 properties that it intends to sell as soon as possible, probably via the auction process.
During recent years, there was a significant reduction in the price of agricultural land changing hands -- the average price paid last year across the 32 counties was around €8,700/ac. This represents a drop of 57pc since 2007 and a reduction of 14.5pc on 2009.
Land held for property development has taken a massive tumble in value during the same period, with values having dropped well in excess of 90pc since peak and some commentators indicating the drop could be as much as 97pc in some instances.
This presents an opportunity for farmers looking to expand, as many of the future sales of former development land are likely to be pitched at agricultural value.
In contrast with the Irish situation, the recent global focus on the food sector has had an impact on the transactions in land internationally.
Productive farmland is becoming more recognised as a valuable commodity by investors, and the World Bank estimated that in 2009 foreign investors bought more than 100m acres of land in the developing world, a 10-fold increase in 10 years.
However, here in Ireland, in the current year, estimates suggest that agricultural land values may have bottomed out or even increased.
One report suggested that average prices for agricultural land increased by 9pc during the first half of this year to around €9,500/ac. Some industry commentators have attributed this recent rise to growth in agricultural production and the resulting expansion of farm holdings, as producers seek to capitalise on the recent rise in the values of farm produce.
For any farmer planning to expand via land acquisition, the price to be paid and funded is one of the most important considerations.
It is vital for any farmer that the price to be paid is based on the financial return that will be generated from agricultural use of the land. The value should be weighed up as a business decision, and the valuation outcome should consider factors such as the additional level of livestock or tillage that can be produced and the additional income, but you must also factor in the extra costs of operating the larger holding.
Funding availability -- or lack of it as the case may be -- has been another major constraint to farm expansion in recent years. During the boom years, when many other industrial sectors were performing strongly, lending to the farming sector did not rank as highly in banking priorities as many other sectors.
Access
More recently, access to credit has been difficult for virtually every business sector.
However, there has been some recent positive developments in this space, with the Government announcing earlier this year that agriculture will be one of the sectors where it will actively encourage lending from the banks.
Bank of Ireland's €200m agri investment fund, launched last July, is a good example of a recent initiative in this area. At the time of its launch, the bank said there had been a recent increase in the amount of credit allocated to the agricultural sector, which was attributed to an increase in the number of land transactions and the number of farmers looking to xpand.
Arranging bank funding is a crucial step in the land purchase process and requires careful consideration and handling.
It is in the farmer's best interest to seek independent advice from an experienced and trustworthy adviser as there are several key issues to be considered, including:
The ability of farm earnings to cover both the bank repayments and also provide a sufficient income for personal and family costs;
The security over any other assets such as other land or family home that the bank is seeking. Farmers should be fully aware of the risks that additional requests such as personal guarantees can bring;
The level of interest or other costs that are being charged. If the interest is variable, then the repayments could increase in the future.
A detailed business plan should be prepared for the purchase. Not only will this present the farmer in a professional light to the bank, but it is also an invaluable tool for the farmer.
A business plan should set out the farmer's intentions for maximising usage of the new land and include cash-flow projections setting out the estimated financial return to be gained.
The cash-flow should show how the bank repayments will be met, and what level of cash will be left over afterwards.
This is invaluable information for the farmer in planning for the future, and assessing the value of the land. Therefore, it is vitally important that the farmer is realistic when preparing the assumptions for the cashflows.
Anthony O'Boyle is a director in corporate finance in Grant Thornton. Email: anthony.oboyle@ie.gt.com
Anthony O'Boyle
Irish Independent
www.buckplanning.ie
Global trends, such as the growing world population and the emergence of Asian and developing economies, are fuelling growth in the demand for Irish agricultural produce.
The Irish agricultural and food sectors have the quality, brand and reputation to compete globally. However, a major constraint to growth will be the ability to expand, as there is limited availability of additional land.
NAMA presides over one of the largest property portfolios in the world. To date, the State agency has been engaged in a process of reviewing borrowers' business plans, agreeing property strategies for the assets held, and agreeing borrowers proposals for managing the properties and disposals. With the business plan process coming towards an end as this year draws to a close, the next phase of actively managing asset sales will begin to take off.
Span
While NAMA's property disposal strategy is expected to span a number of years, it is likely that land available for agricultural use will come to the market in the next 12-24 months. To date, NAMA has appointed receivers over several borrowers, and the agency recently published a list of 850 properties that it intends to sell as soon as possible, probably via the auction process.
During recent years, there was a significant reduction in the price of agricultural land changing hands -- the average price paid last year across the 32 counties was around €8,700/ac. This represents a drop of 57pc since 2007 and a reduction of 14.5pc on 2009.
Land held for property development has taken a massive tumble in value during the same period, with values having dropped well in excess of 90pc since peak and some commentators indicating the drop could be as much as 97pc in some instances.
This presents an opportunity for farmers looking to expand, as many of the future sales of former development land are likely to be pitched at agricultural value.
In contrast with the Irish situation, the recent global focus on the food sector has had an impact on the transactions in land internationally.
Productive farmland is becoming more recognised as a valuable commodity by investors, and the World Bank estimated that in 2009 foreign investors bought more than 100m acres of land in the developing world, a 10-fold increase in 10 years.
However, here in Ireland, in the current year, estimates suggest that agricultural land values may have bottomed out or even increased.
One report suggested that average prices for agricultural land increased by 9pc during the first half of this year to around €9,500/ac. Some industry commentators have attributed this recent rise to growth in agricultural production and the resulting expansion of farm holdings, as producers seek to capitalise on the recent rise in the values of farm produce.
For any farmer planning to expand via land acquisition, the price to be paid and funded is one of the most important considerations.
It is vital for any farmer that the price to be paid is based on the financial return that will be generated from agricultural use of the land. The value should be weighed up as a business decision, and the valuation outcome should consider factors such as the additional level of livestock or tillage that can be produced and the additional income, but you must also factor in the extra costs of operating the larger holding.
Funding availability -- or lack of it as the case may be -- has been another major constraint to farm expansion in recent years. During the boom years, when many other industrial sectors were performing strongly, lending to the farming sector did not rank as highly in banking priorities as many other sectors.
Access
More recently, access to credit has been difficult for virtually every business sector.
However, there has been some recent positive developments in this space, with the Government announcing earlier this year that agriculture will be one of the sectors where it will actively encourage lending from the banks.
Bank of Ireland's €200m agri investment fund, launched last July, is a good example of a recent initiative in this area. At the time of its launch, the bank said there had been a recent increase in the amount of credit allocated to the agricultural sector, which was attributed to an increase in the number of land transactions and the number of farmers looking to xpand.
Arranging bank funding is a crucial step in the land purchase process and requires careful consideration and handling.
It is in the farmer's best interest to seek independent advice from an experienced and trustworthy adviser as there are several key issues to be considered, including:
The ability of farm earnings to cover both the bank repayments and also provide a sufficient income for personal and family costs;
The security over any other assets such as other land or family home that the bank is seeking. Farmers should be fully aware of the risks that additional requests such as personal guarantees can bring;
The level of interest or other costs that are being charged. If the interest is variable, then the repayments could increase in the future.
A detailed business plan should be prepared for the purchase. Not only will this present the farmer in a professional light to the bank, but it is also an invaluable tool for the farmer.
A business plan should set out the farmer's intentions for maximising usage of the new land and include cash-flow projections setting out the estimated financial return to be gained.
The cash-flow should show how the bank repayments will be met, and what level of cash will be left over afterwards.
This is invaluable information for the farmer in planning for the future, and assessing the value of the land. Therefore, it is vitally important that the farmer is realistic when preparing the assumptions for the cashflows.
Anthony O'Boyle is a director in corporate finance in Grant Thornton. Email: anthony.oboyle@ie.gt.com
Anthony O'Boyle
Irish Independent
www.buckplanning.ie
Monday, 3 October 2011
NAMA controls one in five of the new builds in a difficult market
ONE in five of all newly built unsold properties are now controlled by NAMA and most are apartments. the agency said yesterday.
Chief executive Brendan McDonagh defended the agency's controversial proposal to help people who want to buy homes avoid getting trapped in negative equity.
THE National Asset Management Agency (NAMA) believes Irish property prices could fall even further and says the prospects for house prices to stabilise are firmly linked to a better outlook for employment, after-tax pay rates and interest rates.
Addressing the Irish Council for Social Housing conference in Galway, Mr McDonagh said the outlook for residential property was "cloudier" than that for commercial properties like offices and retail units because it is so dependent on a marked improvement in economic conditions.
In an attempt to offload some of its property portfolio and to attract buyers who are fearful that houses and apartments will fall further in value if they buy them, NAMA wants to try a deferred payment scheme.
This will first be rolled out on a phased basis later this year, when the agency puts 750 properties on the market. Mr McDonagh described the scheme as a "short-term measure" that would only continue to be used as long as it was necessary.
It would essentially allow a house buyer to delay paying say 20pc of the property's current value for a number of years. If, for example, the house was still worth the purchase price or even more in five years' time, then the owners would pay.
Incentives
The proposal, which is an attempt to kick-start the property market, has not been universally welcomed, with the Department of Environment raising serious concerns about giving people incentives to buy property again so soon after the bubble. There are fears it could further distort the market.
But the Construction Industry Federation (CIF) rejected suggestions the plan could artificially inflate the property market, saying house prices were already artificially deflated because of the lack of bank finance. The CIF said NAMA's proposals could provide a template for other initiatives that could help to restore a "degree of normality" to property transactions in Ireland.
Mr McDonagh said the bulk of newly built apartments and duplexes that had not been sold were controlled by foreign banks.
It has been looking at ways to divert some of the properties now on its books into social housing, but the NAMA boss said much of it may not be suitable.
This was due to the "type of property, its location, actual demand in the particular geographical area or policy concerns of any over-concentration of social and affordable housing in the particular location'', he said.
But it was continuing to work with the social housing agencies to identify units that might be suitable for their clients.
Meanwhile, it has emerged that NAMA is using secondees from two professional services firms that have been awarded work on the agency's UK loan book.
But Finance Minister Michael Noonan has insisted the arrangements did not disadvantage firms that weren't providing staff to Nama "given the small number" of seconded staff now in place.
Siobhan Creaton and Laura Noonan
Irish Examiner
www.buckplanning.ie
Chief executive Brendan McDonagh defended the agency's controversial proposal to help people who want to buy homes avoid getting trapped in negative equity.
THE National Asset Management Agency (NAMA) believes Irish property prices could fall even further and says the prospects for house prices to stabilise are firmly linked to a better outlook for employment, after-tax pay rates and interest rates.
Addressing the Irish Council for Social Housing conference in Galway, Mr McDonagh said the outlook for residential property was "cloudier" than that for commercial properties like offices and retail units because it is so dependent on a marked improvement in economic conditions.
In an attempt to offload some of its property portfolio and to attract buyers who are fearful that houses and apartments will fall further in value if they buy them, NAMA wants to try a deferred payment scheme.
This will first be rolled out on a phased basis later this year, when the agency puts 750 properties on the market. Mr McDonagh described the scheme as a "short-term measure" that would only continue to be used as long as it was necessary.
It would essentially allow a house buyer to delay paying say 20pc of the property's current value for a number of years. If, for example, the house was still worth the purchase price or even more in five years' time, then the owners would pay.
Incentives
The proposal, which is an attempt to kick-start the property market, has not been universally welcomed, with the Department of Environment raising serious concerns about giving people incentives to buy property again so soon after the bubble. There are fears it could further distort the market.
But the Construction Industry Federation (CIF) rejected suggestions the plan could artificially inflate the property market, saying house prices were already artificially deflated because of the lack of bank finance. The CIF said NAMA's proposals could provide a template for other initiatives that could help to restore a "degree of normality" to property transactions in Ireland.
Mr McDonagh said the bulk of newly built apartments and duplexes that had not been sold were controlled by foreign banks.
It has been looking at ways to divert some of the properties now on its books into social housing, but the NAMA boss said much of it may not be suitable.
This was due to the "type of property, its location, actual demand in the particular geographical area or policy concerns of any over-concentration of social and affordable housing in the particular location'', he said.
But it was continuing to work with the social housing agencies to identify units that might be suitable for their clients.
Meanwhile, it has emerged that NAMA is using secondees from two professional services firms that have been awarded work on the agency's UK loan book.
But Finance Minister Michael Noonan has insisted the arrangements did not disadvantage firms that weren't providing staff to Nama "given the small number" of seconded staff now in place.
Siobhan Creaton and Laura Noonan
Irish Examiner
www.buckplanning.ie
Monday, 19 September 2011
Hogan criticises Nama over housing
MINISTER FOR the Environment Phil Hogan has attacked the National Asset Management Agency, saying it is more interested in getting “to a profitable position” than delivering housing to those on housing waiting lists.
Speaking before he addressed the Royal Institute of Architects in Ireland in Dublin yesterday, he said he was “concerned and frustrated at the notion of Nama not delivering the social dividend”.
“We have had meetings with Nama and Minister Penrose has been very active in seeking to get greater product made available with very little success. No, I am not happy,” he said.
Addressing the conference, on housing policy, Mr Hogan also said supply for some housing outstripped demand, and for other housing demand outstripped supply.
“We want to get the balance right. Nama could be more proactive in doing something about it. It could get more proactive about moving on properties to be used for housing.”
John O’Connor, chief executive of the Housing and Sustainable Communities Agency, said unfinished and unoccupied housing – so-called “ghost estates” – was having a negative impact on the economy.
“We need to get these houses finished and occupied. We need to manage the housing stock a lot better.”
The lack of decision-making by the private and public sector involved in housing was causing economic and social paralysis. Waiting for the bottoming out or the floor of the market was ridiculous, he said.
“Houses stopped selling four years ago. Until we start making decisions we could be waiting another four years,” he added.
Kieran Gallagher, deputy city architect with Dublin City Council, said regeneration of rundown flat complexes such as Dolphin House and St Teresa’s Gardens in Dublin – plans for which collapsed two years ago – would happen “over the next 10 to 15 years”. In the meantime, “we are looking at the refurbishment of existing buildings,” he said.
He said over the past six months he had been spending 50 per cent of his time “dealing with defects and problems” in social housing delivered by private developers under part V of the Planning Act. “These problems with building quality and compliance are only really coming to light now.”
Paul Kelly, architect with Gardiner Architects in Dublin, said the paucity of building regulations applying to “pre ’63” bedsitter accommodation – typically former family homes divided into flats before the 1963 Local Government Planning Act, meant the “most vulnerable and poorest” people were being consigned to unsafe, inadequate housing.
There were 8,000 bedsits in the greater Dublin area, he said, and about 7,000 more pre ’63 flats.
“These flats have no concern for the needs of children, no storage space, no amenity space, no waste disposal, no fire safety and in some cases not even daylight is required.
“We need to get people out of the pre ’63 accommodation, into quality accommodation, and get families back into these city houses.”
Irish Times
www.buckplanning.ie
Speaking before he addressed the Royal Institute of Architects in Ireland in Dublin yesterday, he said he was “concerned and frustrated at the notion of Nama not delivering the social dividend”.
“We have had meetings with Nama and Minister Penrose has been very active in seeking to get greater product made available with very little success. No, I am not happy,” he said.
Addressing the conference, on housing policy, Mr Hogan also said supply for some housing outstripped demand, and for other housing demand outstripped supply.
“We want to get the balance right. Nama could be more proactive in doing something about it. It could get more proactive about moving on properties to be used for housing.”
John O’Connor, chief executive of the Housing and Sustainable Communities Agency, said unfinished and unoccupied housing – so-called “ghost estates” – was having a negative impact on the economy.
“We need to get these houses finished and occupied. We need to manage the housing stock a lot better.”
The lack of decision-making by the private and public sector involved in housing was causing economic and social paralysis. Waiting for the bottoming out or the floor of the market was ridiculous, he said.
“Houses stopped selling four years ago. Until we start making decisions we could be waiting another four years,” he added.
Kieran Gallagher, deputy city architect with Dublin City Council, said regeneration of rundown flat complexes such as Dolphin House and St Teresa’s Gardens in Dublin – plans for which collapsed two years ago – would happen “over the next 10 to 15 years”. In the meantime, “we are looking at the refurbishment of existing buildings,” he said.
He said over the past six months he had been spending 50 per cent of his time “dealing with defects and problems” in social housing delivered by private developers under part V of the Planning Act. “These problems with building quality and compliance are only really coming to light now.”
Paul Kelly, architect with Gardiner Architects in Dublin, said the paucity of building regulations applying to “pre ’63” bedsitter accommodation – typically former family homes divided into flats before the 1963 Local Government Planning Act, meant the “most vulnerable and poorest” people were being consigned to unsafe, inadequate housing.
There were 8,000 bedsits in the greater Dublin area, he said, and about 7,000 more pre ’63 flats.
“These flats have no concern for the needs of children, no storage space, no amenity space, no waste disposal, no fire safety and in some cases not even daylight is required.
“We need to get people out of the pre ’63 accommodation, into quality accommodation, and get families back into these city houses.”
Irish Times
www.buckplanning.ie
Nama offers lands used as helipad by developer for sale
LANDS OVERLOOKING Dublin Bay, which were used by developer Bernard McNamara as a helicopter landing pad, are being offered for sale by receivers acting on behalf of the National Asset Management Agency (Nama).
The four-acre site, adjacent to Booterstown marsh, a nature reserve which has EU Special Protection Area conservation status, is being sold through Farrell, Grant and Sparks. It was formerly owned by the McNamara group.
However, national heritage organisation An Taisce and local politicians are appealing to Nama to stop the sale and keep the land in public ownership.
In a letter to Nama chairman Frank Daly, An Taisce said the marsh land was of little commercial value, but was an important public and environmental asset.
If retained as an open space and absorbed within the zone of the Special Protection Area, it would have “considerable benefits to the local community, to views and vistas along Dublin Bay, as a wildlife haven and become an important study/observation area”.
It could also act as a “buffer zone” to the Special Protection Area, which would help protect vulnerable and sensitive species, particularly over-wintering birds such as the light-bellied Brent geese, the scarce Spotted Redshank and Little Stint, “which find a haven in the nature reserve”.
The buffer zone would also provide an additional layer of protection to the existing area of biodiversity importance and make a fundamental contribution to the conservation of the nature reserve and the wider bay region, it said.
“We suggest that Nama release this land to the Department of the Environment to be held under the portfolio of lands cared for by the parks and wildlife service.”
Dublin city councillor Paddy McCartan (FG) said it was within the powers of Nama to keep some lands in trust for the public.
“There is no need to rush headlong into the sale of these lands. It’s not a ghost estate or some other property they need to get rid of.
“This should be retained as open space for the benefit of the adjoining area.”
Labour councillor Dermot Lacey has tabled a motion for next month’s council meeting seeking support for the land to be added to the nature reserve.
In 2003, An Bord Pleanála refused Mr McNamara’s Ashcastle developments planning permission for 53 luxury apartments and a public park on the land.
Mr McNamara subsequently located a helipad on the site, but its use was stopped by An Bord Pleanála, which determined in 2005 that the helipad would require planning permission.
Irish Times
www.buckplanning.ie
The four-acre site, adjacent to Booterstown marsh, a nature reserve which has EU Special Protection Area conservation status, is being sold through Farrell, Grant and Sparks. It was formerly owned by the McNamara group.
However, national heritage organisation An Taisce and local politicians are appealing to Nama to stop the sale and keep the land in public ownership.
In a letter to Nama chairman Frank Daly, An Taisce said the marsh land was of little commercial value, but was an important public and environmental asset.
If retained as an open space and absorbed within the zone of the Special Protection Area, it would have “considerable benefits to the local community, to views and vistas along Dublin Bay, as a wildlife haven and become an important study/observation area”.
It could also act as a “buffer zone” to the Special Protection Area, which would help protect vulnerable and sensitive species, particularly over-wintering birds such as the light-bellied Brent geese, the scarce Spotted Redshank and Little Stint, “which find a haven in the nature reserve”.
The buffer zone would also provide an additional layer of protection to the existing area of biodiversity importance and make a fundamental contribution to the conservation of the nature reserve and the wider bay region, it said.
“We suggest that Nama release this land to the Department of the Environment to be held under the portfolio of lands cared for by the parks and wildlife service.”
Dublin city councillor Paddy McCartan (FG) said it was within the powers of Nama to keep some lands in trust for the public.
“There is no need to rush headlong into the sale of these lands. It’s not a ghost estate or some other property they need to get rid of.
“This should be retained as open space for the benefit of the adjoining area.”
Labour councillor Dermot Lacey has tabled a motion for next month’s council meeting seeking support for the land to be added to the nature reserve.
In 2003, An Bord Pleanála refused Mr McNamara’s Ashcastle developments planning permission for 53 luxury apartments and a public park on the land.
Mr McNamara subsequently located a helipad on the site, but its use was stopped by An Bord Pleanála, which determined in 2005 that the helipad would require planning permission.
Irish Times
www.buckplanning.ie
Sunday, 4 September 2011
NAMA seeks buyer for ‘exclusive’ Limerick estate
AN UNFINISHED Castletroy housing estate once billed as being among the city’s most exclusive will now take “a number of year” to cplete, according to receivers acting for NAMA.
Of over 200 houses originally planned for Evanwood, Golf Links Road, only 36 have been built and occupied.
Nineteen are partially constructed while 141 have yet to commence. A creche was also part of the original plans. When initially put on the market by developer Ger Clohessy in 2008, a three-bed semi-detached cost €350,000 but the asking price had dropped as low as €200,000 by 2010.
Former Young Munster skipper Mr Clohessy last year strongly criticised Irish Nationwide for appointing receivers to Evanwood, saying it “flew in the face of commercial logic” given the level of market interest and claiming the bank had been supportive of the project right up to the appointment of the receivers.
Receivers Farrell Grant Sparks, now acting for NAMA, have appealed to Limerick County Council to extend planning permission by another five years in order to dispose of the site to a “solvent third party”. “The economic downturn prevented the completion of the 19 houses and made the commencement of the other 141 houses impossible,” the receivers state to Limerick COunty COuncil adding there is no known date for the completion of the estate.
But architect Diarmuid Maguire, for Farrell Grant Sparks, says there are “ongoing discussions with a number of interested parties”.
Appealing to Limerick County Council not to allow planning permission to lapse, Mr Maguire states this would make it more attractive to prospective buyers.
It is in the interests of the local authority, NAMA, the receivers and “most importantly the existing residents on the estate” that that Evanwood is completed.
Limerick Leader
www.buckplanning.ie
Of over 200 houses originally planned for Evanwood, Golf Links Road, only 36 have been built and occupied.
Nineteen are partially constructed while 141 have yet to commence. A creche was also part of the original plans. When initially put on the market by developer Ger Clohessy in 2008, a three-bed semi-detached cost €350,000 but the asking price had dropped as low as €200,000 by 2010.
Former Young Munster skipper Mr Clohessy last year strongly criticised Irish Nationwide for appointing receivers to Evanwood, saying it “flew in the face of commercial logic” given the level of market interest and claiming the bank had been supportive of the project right up to the appointment of the receivers.
Receivers Farrell Grant Sparks, now acting for NAMA, have appealed to Limerick County Council to extend planning permission by another five years in order to dispose of the site to a “solvent third party”. “The economic downturn prevented the completion of the 19 houses and made the commencement of the other 141 houses impossible,” the receivers state to Limerick COunty COuncil adding there is no known date for the completion of the estate.
But architect Diarmuid Maguire, for Farrell Grant Sparks, says there are “ongoing discussions with a number of interested parties”.
Appealing to Limerick County Council not to allow planning permission to lapse, Mr Maguire states this would make it more attractive to prospective buyers.
It is in the interests of the local authority, NAMA, the receivers and “most importantly the existing residents on the estate” that that Evanwood is completed.
Limerick Leader
www.buckplanning.ie
Friday, 29 April 2011
Nama failing to look after historic buildings in its portfolio, says RHA
ARCHITECTURAL HERITAGE FALLING INTO NEGLECT: THE ROYAL Hibernian Academy (RHA) has strongly criticised the National Asset Management Agency (Nama) for failing to take steps to protect historic buildings owned by developers whose multi-million euro loans have ended up in the State’s “bad bank”.
A statement – signed by its president, architect Des McMahon, four former presidents, 23 members of the academy and five associates – described this “conduct of omission as in itself an act of vandalism . . . totally inappropriate in this day and age”.
The signatories include some of Ireland’s leading artists – painters Pauline Bewick, James Hanley, Eithne Jordan, Brett McEntagart and Patrick Pye; and sculptors Rachel Joynt, Carolyn Mulholland, Áilis O’Connell, Vivienne Roche and Imogen Stuart.
They said they were “extremely alarmed at the continued deterioration of our architectural stock of historic and conservation merit”, such as the former Hume Street Hospital, which adjoins the RHA gallery at Ely Place, recently stripped by thieves.
The artists accused Nama of “not taking its legal responsibility seriously in regard to appropriate protection of several historic buildings currently under their ownership” and said its “response to our approaches to them . . . has been evasive and ambiguous”.
Nama sent a letter to the secretary of the RHA “not admitting that they owned such properties and not making any commitment to safeguarding them”, according to Mr McMahon, who was chief architect for the GAA’s acclaimed redevelopment of Croke Park.
He said the issue had been raised at the academy’s April meeting and “the general view was that if this was a painting or piece of sculpture, there’d be no question of them saying that they only own the loan attached to it, not the painting or piece of sculpture”.
Referring specifically to Nama, he said: “There should be no ambiguity whatsoever about a body that’s technically our national agency taking steps to protect our national architectural heritage. And as I understand it, they are legally obliged to do so.”
Painter Maeve McCarthy, who drafted the statement, said section 141 of the 2009 Act that established Nama gave it the authority to seek “entry and maintenance” orders in the District Court to secure any building “at risk from trespassers or vandalism”.
A spokesman for Nama reiterated the agency had merely “acquired loans which are often secured by properties, but it has not acquired the properties themselves. Therefore, it is incorrect to say that Nama has a direct responsibility in this area.
“Nevertheless, where the agency is aware that a debtor is not honouring their responsibilities in this area, the agency has directly taken action with the property owners or with the relevant authorities to try to ensure that the properties are properly secured.”
Ms McCarthy said she had a studio on the top floor of the RHA gallery and could see thieves stripping lead from the roof valleys of Hume Street Hospital last February “and walking out through the front door with it and all the copper piping they took”.
Along with her brother Peter, she started a campaign to save the building by contacting Dublin City Council, TDs, councillors, An Taisce and the media, including using Facebook. “We’re outraged by what’s been happening, and we just can’t let the vandals take over.” She noted that when the council issued an enforcement notice under the Planning Acts, it was served both on developer Michael Kelly, who had bought the former hospital for €30 million in 2006, and on Nama, requiring repair works to be carried out by April 29th.
“There is security now at Nos 3-8 Hume Street, but no roof repair, so it will get a court order after that if the work isn’t done. It is a scandal that Nama, the bankers, developers and those in authority do nothing while our heritage is plundered and destroyed.”
Ms McCarthy also expressed concern about Belcamp College, on the north side of Dublin, which was recently ransacked and set on fire – “that’s also in Nama”, she said – and about the fate of Aldborough House, on Portland Row, which is vacant.
Other historic properties she identified as in danger include two houses in Henrietta Street, owned by Dublin City Council, and others in James’s Street and Thomas Street owned by Liam Carroll, whose property group collapsed with debts of €1.3 billion. For more information, visit facebook.com/savehumestreetfromdestruction
Irish Times
www.buckplanning.ie
A statement – signed by its president, architect Des McMahon, four former presidents, 23 members of the academy and five associates – described this “conduct of omission as in itself an act of vandalism . . . totally inappropriate in this day and age”.
The signatories include some of Ireland’s leading artists – painters Pauline Bewick, James Hanley, Eithne Jordan, Brett McEntagart and Patrick Pye; and sculptors Rachel Joynt, Carolyn Mulholland, Áilis O’Connell, Vivienne Roche and Imogen Stuart.
They said they were “extremely alarmed at the continued deterioration of our architectural stock of historic and conservation merit”, such as the former Hume Street Hospital, which adjoins the RHA gallery at Ely Place, recently stripped by thieves.
The artists accused Nama of “not taking its legal responsibility seriously in regard to appropriate protection of several historic buildings currently under their ownership” and said its “response to our approaches to them . . . has been evasive and ambiguous”.
Nama sent a letter to the secretary of the RHA “not admitting that they owned such properties and not making any commitment to safeguarding them”, according to Mr McMahon, who was chief architect for the GAA’s acclaimed redevelopment of Croke Park.
He said the issue had been raised at the academy’s April meeting and “the general view was that if this was a painting or piece of sculpture, there’d be no question of them saying that they only own the loan attached to it, not the painting or piece of sculpture”.
Referring specifically to Nama, he said: “There should be no ambiguity whatsoever about a body that’s technically our national agency taking steps to protect our national architectural heritage. And as I understand it, they are legally obliged to do so.”
Painter Maeve McCarthy, who drafted the statement, said section 141 of the 2009 Act that established Nama gave it the authority to seek “entry and maintenance” orders in the District Court to secure any building “at risk from trespassers or vandalism”.
A spokesman for Nama reiterated the agency had merely “acquired loans which are often secured by properties, but it has not acquired the properties themselves. Therefore, it is incorrect to say that Nama has a direct responsibility in this area.
“Nevertheless, where the agency is aware that a debtor is not honouring their responsibilities in this area, the agency has directly taken action with the property owners or with the relevant authorities to try to ensure that the properties are properly secured.”
Ms McCarthy said she had a studio on the top floor of the RHA gallery and could see thieves stripping lead from the roof valleys of Hume Street Hospital last February “and walking out through the front door with it and all the copper piping they took”.
Along with her brother Peter, she started a campaign to save the building by contacting Dublin City Council, TDs, councillors, An Taisce and the media, including using Facebook. “We’re outraged by what’s been happening, and we just can’t let the vandals take over.” She noted that when the council issued an enforcement notice under the Planning Acts, it was served both on developer Michael Kelly, who had bought the former hospital for €30 million in 2006, and on Nama, requiring repair works to be carried out by April 29th.
“There is security now at Nos 3-8 Hume Street, but no roof repair, so it will get a court order after that if the work isn’t done. It is a scandal that Nama, the bankers, developers and those in authority do nothing while our heritage is plundered and destroyed.”
Ms McCarthy also expressed concern about Belcamp College, on the north side of Dublin, which was recently ransacked and set on fire – “that’s also in Nama”, she said – and about the fate of Aldborough House, on Portland Row, which is vacant.
Other historic properties she identified as in danger include two houses in Henrietta Street, owned by Dublin City Council, and others in James’s Street and Thomas Street owned by Liam Carroll, whose property group collapsed with debts of €1.3 billion. For more information, visit facebook.com/savehumestreetfromdestruction
Irish Times
www.buckplanning.ie
Thursday, 31 March 2011
Most zoned land not fit for building, says Nama chief
NAMA CHIEF executive Brendan McDonagh has put on record that the State agency “has a very real interest in the decisions being made by local authorities” on zoning more land for development.
He has also said that most of an estimated overhang of 60,000 acres of land zoned but not yet developed throughout the State is “probably unsuitable” for residential or other development.
In a letter to Cork-based environmental engineer Declan Waugh, who had complained about the overzoning of land around Bandon, he said Mr Waugh was “completely correct” about Nama’s interest.
Mr Waugh had said councillors “should take cognisance of development lands owned or in the control of Nama . . . given that the taxpayer through the vehicle of Nama needs to ensure a return on these investments by the State”.
As a result, priority should be given to having these lands developed or construction completed prior to zoning of additional lands for housing.
Mr Waugh cited a draft plan for Bandon, which “seeks to zone additional land for 1,700 houses on top of the already zoned and uncompleted lands where planning remains for 1,500 houses some of which are now under the control of Nama”.
Mr McDonagh told Mr Waugh that his letter had been considered by both Nama’s planning advisory committee and by its board, and it would also be taken up with the County and City Managers’ Association.
He said the security for loans held by Nama “is property, including land. It goes without saying that Nama has a very real interest in the decisions being made by local authorities with respect to zoning as this directly affects the value of the security held for these loans.”
Mr McDonagh wrote: “We would fully acknowledge that consideration of any additional zoning by local authorities must be conducted first of all on an examination of existing zoning.”
Mr McDonagh said “any additional zoning should be in a sequential basis taking account of the required need”.
In other words, local authorities should seek to ensure that existing zoned land would be developed before embarking on further zonings.
He told Mr Waugh that the issues raised were “of both local and national importance” and that Nama intended to pursue them with the managers’ association, with which its planning advisory committee had already engaged.
Mr Waugh, a member of Cork County Council’s strategic planning committee, said he was one of a number of professionals “working for the wider interests of society” to influence planning policies. “This work was undertaken voluntarily for the benefit of local communities in the interests of sustainable development and to prevent the mistakes that led to the recent collapse of the housing market and the current banking crisis,” he told The Irish Times.
This followed a meeting of the strategic planning committee at which “the views expressed by the representative of the construction industry were regarded as fact while the views expressed by myself as a professional environmental consultant were entirely disregarded”.
Irish Times
www.buckplanning.ie
He has also said that most of an estimated overhang of 60,000 acres of land zoned but not yet developed throughout the State is “probably unsuitable” for residential or other development.
In a letter to Cork-based environmental engineer Declan Waugh, who had complained about the overzoning of land around Bandon, he said Mr Waugh was “completely correct” about Nama’s interest.
Mr Waugh had said councillors “should take cognisance of development lands owned or in the control of Nama . . . given that the taxpayer through the vehicle of Nama needs to ensure a return on these investments by the State”.
As a result, priority should be given to having these lands developed or construction completed prior to zoning of additional lands for housing.
Mr Waugh cited a draft plan for Bandon, which “seeks to zone additional land for 1,700 houses on top of the already zoned and uncompleted lands where planning remains for 1,500 houses some of which are now under the control of Nama”.
Mr McDonagh told Mr Waugh that his letter had been considered by both Nama’s planning advisory committee and by its board, and it would also be taken up with the County and City Managers’ Association.
He said the security for loans held by Nama “is property, including land. It goes without saying that Nama has a very real interest in the decisions being made by local authorities with respect to zoning as this directly affects the value of the security held for these loans.”
Mr McDonagh wrote: “We would fully acknowledge that consideration of any additional zoning by local authorities must be conducted first of all on an examination of existing zoning.”
Mr McDonagh said “any additional zoning should be in a sequential basis taking account of the required need”.
In other words, local authorities should seek to ensure that existing zoned land would be developed before embarking on further zonings.
He told Mr Waugh that the issues raised were “of both local and national importance” and that Nama intended to pursue them with the managers’ association, with which its planning advisory committee had already engaged.
Mr Waugh, a member of Cork County Council’s strategic planning committee, said he was one of a number of professionals “working for the wider interests of society” to influence planning policies. “This work was undertaken voluntarily for the benefit of local communities in the interests of sustainable development and to prevent the mistakes that led to the recent collapse of the housing market and the current banking crisis,” he told The Irish Times.
This followed a meeting of the strategic planning committee at which “the views expressed by the representative of the construction industry were regarded as fact while the views expressed by myself as a professional environmental consultant were entirely disregarded”.
Irish Times
www.buckplanning.ie
Friday, 4 March 2011
1916 relatives tell Nama of fears for Moore Street sites
RELATIVES OF the signatories of the 1916 Proclamation have met the board of the National Asset Management Agency (Nama) to express their opposition to developer Joe O’Reilly’s plans for the redevelopment of the Carlton site.
The 2.7ha site stretches from the former Carlton Cinema on Upper O’Connell Street to Moore Street and surrounds the national monument houses on Moore Street that were occupied by the leaders of the 1916 Rising.
Mr O’Reilly was last year granted permission for a large-scale development to include retail and residential units, restaurants and car spaces. He is one of the first 10 developers who went into Nama. He was also named as one of 10 Anglo Irish Bank customers who borrowed from the lender to buy a 10 per cent stake in the bank.
Members of the Connolly, Clarke, Ceannt, MacDonagh and Plunkett families yesterday met Nama chairman Frank Daly and chief executive Brendan MacDonagh. The relatives’ group sought the meeting with Nama to ask that Mr O’Reilly not be “in any way” facilitated by the agency to proceed with the development.
They were particularly concerned that demolition had begun last Christmas on buildings on Moore Lane, backing on to Moore Street, that they believe were also occupied by leaders of the Easter Rising.
The 19th-century buildings at 17 and 18 Moore Lane had been judged unsafe by Dublin City Council, which ordered they be lowered in height to make them safe.
Patrick Cooney, spokesman for the Save 16 Moore Street Committee, said the group had been “very well received” by the Nama representatives. He said he realised the representatives could give no commitments as to the future of the site, but said it was an opportunity for the group to outline their alternative plans, which include a museum, but would also allow residential and commercial development on an appropriate scale.
Due to their historic role, four houses on Moore Street were designated national monuments by then minister for the environment Dick Roche in 2007.
Irish Times
www.buckplanning.ie
The 2.7ha site stretches from the former Carlton Cinema on Upper O’Connell Street to Moore Street and surrounds the national monument houses on Moore Street that were occupied by the leaders of the 1916 Rising.
Mr O’Reilly was last year granted permission for a large-scale development to include retail and residential units, restaurants and car spaces. He is one of the first 10 developers who went into Nama. He was also named as one of 10 Anglo Irish Bank customers who borrowed from the lender to buy a 10 per cent stake in the bank.
Members of the Connolly, Clarke, Ceannt, MacDonagh and Plunkett families yesterday met Nama chairman Frank Daly and chief executive Brendan MacDonagh. The relatives’ group sought the meeting with Nama to ask that Mr O’Reilly not be “in any way” facilitated by the agency to proceed with the development.
They were particularly concerned that demolition had begun last Christmas on buildings on Moore Lane, backing on to Moore Street, that they believe were also occupied by leaders of the Easter Rising.
The 19th-century buildings at 17 and 18 Moore Lane had been judged unsafe by Dublin City Council, which ordered they be lowered in height to make them safe.
Patrick Cooney, spokesman for the Save 16 Moore Street Committee, said the group had been “very well received” by the Nama representatives. He said he realised the representatives could give no commitments as to the future of the site, but said it was an opportunity for the group to outline their alternative plans, which include a museum, but would also allow residential and commercial development on an appropriate scale.
Due to their historic role, four houses on Moore Street were designated national monuments by then minister for the environment Dick Roche in 2007.
Irish Times
www.buckplanning.ie
Monday, 31 January 2011
Nama reply sought over rezoning plan
NAMA HAS been asked to comment on a draft local area plan for Bandon, Co Cork, which has zoned land for a further 1,700 houses even though land already zoned for housing – some under Nama’s control – remains to be developed.
Declan Waugh, an environmental engineer and member of Cork County Council’s strategic planning committee, wrote to Nama last week seeking clarification of its interest in lands on the outskirts of Bandon.
“Nama is an asset management company that will hold, manage, develop or enhance loans . . . with the aim of achieving the best possible return for the taxpayer on the loans and any underlying assets,” he said.
Mr Waugh said in considering local area plans, councillors “should take cognisance of development lands owned or in the control of Nama . . . given that the taxpayer through the vehicle of Nama needs to ensure a return on these investments by the State”.
Planning bodies should give priority to having these lands developed or construction completed prior to further zoning so there would be “orderly development”.
He cited the draft local area plan for Bandon, which “seeks to zone additional land for 1,700 houses on top of the already zoned and uncompleted lands where planning remains for 1,500 houses, some of which are now under the control of Nama”.
When Mr Waugh raised this at the strategic planning committee, the response he received was that Nama did not own development lands, but the associated loans. As a result, the council could carry on zoning land, “regardless of market implications”.
In his opinion, “there should be co-operation between State bodies on prioritising the completion of unfinished estates and development of suitable lands already in the control of Nama”.
Mr Waugh has not yet received a reply from Nama.
Irish Times
www.buckplanning.ie
Declan Waugh, an environmental engineer and member of Cork County Council’s strategic planning committee, wrote to Nama last week seeking clarification of its interest in lands on the outskirts of Bandon.
“Nama is an asset management company that will hold, manage, develop or enhance loans . . . with the aim of achieving the best possible return for the taxpayer on the loans and any underlying assets,” he said.
Mr Waugh said in considering local area plans, councillors “should take cognisance of development lands owned or in the control of Nama . . . given that the taxpayer through the vehicle of Nama needs to ensure a return on these investments by the State”.
Planning bodies should give priority to having these lands developed or construction completed prior to further zoning so there would be “orderly development”.
He cited the draft local area plan for Bandon, which “seeks to zone additional land for 1,700 houses on top of the already zoned and uncompleted lands where planning remains for 1,500 houses, some of which are now under the control of Nama”.
When Mr Waugh raised this at the strategic planning committee, the response he received was that Nama did not own development lands, but the associated loans. As a result, the council could carry on zoning land, “regardless of market implications”.
In his opinion, “there should be co-operation between State bodies on prioritising the completion of unfinished estates and development of suitable lands already in the control of Nama”.
Mr Waugh has not yet received a reply from Nama.
Irish Times
www.buckplanning.ie
Thursday, 7 October 2010
Concern over Nama role for Greystones development
CONCERN HAS been expressed for the future of the €300 million redevelopment of Greystones Harbour after builders confirmed the project is to come under the control of Nama.
Work on the marine elements of the project is scheduled for completion within a month, with the next phase involving the creation of a new harbour square, a medical centre and the provision of five new clubhouses for existing harbour users.
The plan, which is a complex public-private partnership between Wicklow County Council, home builders Park Developments and civil engineers John Sisk Son, was financially underpinned by the development of retail space, a 320-berth marina and 341 new homes.
Some €80 million has already been spent on the development of the new harbour and marina. However, concern for the project’s financial viability was first expressed by the builders themselves. Operating as the Sispar consortium, they asked Wicklow County Council to allow the development of an additional 34 new homes, bringing the total housing element to 375 units.
But renewed concern has now been expressed by councillors following the confirmation from Sispar that the project is now headed for Nama.
The chairman of Wicklow County Council, Labour’s Tom Fortune, said the announcement “came as a shock”.
He said councillors “had been led to believe that the project was on track for partial completion by the end of 2011. Now that is all up in the air. We have been advised that the completion of the project is dependent on Nama making funding available.”
“I think that there is a real risk that the project will not be completed and that if we do not act the hoardings around the harbour could be left there for a very long time,” he said.
However a spokesman for Sispar said Nama was taking in all loans over €5 million, whether they were performing or not. He said he had not heard anyone say the Sispar loans were not performing. While he acknowledged future decisions would require the approval of Nama, he said work was still “ongoing” and a stoppage leaving the hoardings up would seem “unlikely”.
Seán Quirke of Wicklow County Council also confirmed the project was to come under the control of Nama.
He said councillors would be voting on the additional 34 housing units in December and the next phase would get under way in January. He said this did not mean a hiatus in the schedule, as work would continue around the harbour.
Mr Quirke confirmed An Bord Pleanála had issued a decision that the additional 34 new homes would require a new environmental assessment. But he said this was because the homes were initially to be located on an old dump.
The council had subsequently decided to move these houses and therefore could grant permission without reference to a new environmental assessment. Mr Quirke said the council did not believe it needed to consult An Bord Pleanála on the question of a new environmental assessment in relation to the new housing site, as the board’s objections had related only to the former dump.
The council proposes using Part VII of the Planning and Development Act which does not provide for an appeal process.
Irish Times
www.buckplanning.ie
Work on the marine elements of the project is scheduled for completion within a month, with the next phase involving the creation of a new harbour square, a medical centre and the provision of five new clubhouses for existing harbour users.
The plan, which is a complex public-private partnership between Wicklow County Council, home builders Park Developments and civil engineers John Sisk Son, was financially underpinned by the development of retail space, a 320-berth marina and 341 new homes.
Some €80 million has already been spent on the development of the new harbour and marina. However, concern for the project’s financial viability was first expressed by the builders themselves. Operating as the Sispar consortium, they asked Wicklow County Council to allow the development of an additional 34 new homes, bringing the total housing element to 375 units.
But renewed concern has now been expressed by councillors following the confirmation from Sispar that the project is now headed for Nama.
The chairman of Wicklow County Council, Labour’s Tom Fortune, said the announcement “came as a shock”.
He said councillors “had been led to believe that the project was on track for partial completion by the end of 2011. Now that is all up in the air. We have been advised that the completion of the project is dependent on Nama making funding available.”
“I think that there is a real risk that the project will not be completed and that if we do not act the hoardings around the harbour could be left there for a very long time,” he said.
However a spokesman for Sispar said Nama was taking in all loans over €5 million, whether they were performing or not. He said he had not heard anyone say the Sispar loans were not performing. While he acknowledged future decisions would require the approval of Nama, he said work was still “ongoing” and a stoppage leaving the hoardings up would seem “unlikely”.
Seán Quirke of Wicklow County Council also confirmed the project was to come under the control of Nama.
He said councillors would be voting on the additional 34 housing units in December and the next phase would get under way in January. He said this did not mean a hiatus in the schedule, as work would continue around the harbour.
Mr Quirke confirmed An Bord Pleanála had issued a decision that the additional 34 new homes would require a new environmental assessment. But he said this was because the homes were initially to be located on an old dump.
The council had subsequently decided to move these houses and therefore could grant permission without reference to a new environmental assessment. Mr Quirke said the council did not believe it needed to consult An Bord Pleanála on the question of a new environmental assessment in relation to the new housing site, as the board’s objections had related only to the former dump.
The council proposes using Part VII of the Planning and Development Act which does not provide for an appeal process.
Irish Times
www.buckplanning.ie
Sunday, 13 September 2009
Green light for ‘social dividend’ clause
The Green Party has secured government support for a new ‘social dividend’ clause in the Nama Bill, giving schools, hospitals and community projects ‘‘first refusal’’ on land acquired from developers that are in default.
The measure is one of several changes designed to smooth the way for Green Party members to support the Nama proposal in a ballot next month.
An Oireachtas inquiry into the banking crisis is likely to be set up in January after the bad bank legislation has been finalised, according to some sources.
Party leader John Gormley and communications minister Eamon Ryan are making the case to their members for Nama as ‘‘an opportunity to bring better planning to national development’’.
The social dividend clause would give state and community projects first refusal on sites at market value and this would ‘‘lead to better and cheaper planning’’, said Ryan.
‘‘One of the developments at committee stage – and I think we’ll see it – is the offer of first refusal for public use in the development of the land. It will still be a fair price for the land but not an inflated price as has been paid in the past by the state."
Ryan said that ‘‘developers inflated land prices when they knew the state wanted to purchase it for developing projects’’ in the past. He was speaking as the Green Party membership met yesterday in the Sheraton Athlone Hotel to consider a range of changes to the draft bill.
Sunday Business Post
www.buckplanning.ie
The measure is one of several changes designed to smooth the way for Green Party members to support the Nama proposal in a ballot next month.
An Oireachtas inquiry into the banking crisis is likely to be set up in January after the bad bank legislation has been finalised, according to some sources.
Party leader John Gormley and communications minister Eamon Ryan are making the case to their members for Nama as ‘‘an opportunity to bring better planning to national development’’.
The social dividend clause would give state and community projects first refusal on sites at market value and this would ‘‘lead to better and cheaper planning’’, said Ryan.
‘‘One of the developments at committee stage – and I think we’ll see it – is the offer of first refusal for public use in the development of the land. It will still be a fair price for the land but not an inflated price as has been paid in the past by the state."
Ryan said that ‘‘developers inflated land prices when they knew the state wanted to purchase it for developing projects’’ in the past. He was speaking as the Green Party membership met yesterday in the Sheraton Athlone Hotel to consider a range of changes to the draft bill.
Sunday Business Post
www.buckplanning.ie
Sunday, 6 September 2009
Greens press to rezone land in Nama’s hands
The government is considering giving itself powers to rezone thousands of acres of development land for social purposes while it is in the hands of the National Asset Management Agency (Nama).
Cabinet ministers are studying how to meet Green party concerns over future plans for vast tracts of development land being valued by Nama as part of a move to take €90 billion of impaired property loans off the books of Irish banks.
The Greens are seeking to ensure that portions of the land — which face huge writedowns under Nama — are set aside for building schools, hospitals and community facilities. The government is considering giving extra planning powers to the environment minister in a development bill, not in the Nama legislation.
Eamon Ryan, the communications minister (pictured above), and Dan Boyle, the party chairman, were in talks with Brian Lenihan, the finance minister, last week about the shape of the Nama legislation and related Green party concerns.
Ryan and John Gormley, the party leader, also pressed their demands for Nama-related measures at three separate cabinet meetings last week which were dominated by talks on the complex design of the banking-sector rescue vehicle.
One government source last week said that more than 20 different drafts of the legislation had been circulated to ministers since the first version of the Nama bill in July.
The Greens are also demanding the introduction of a “windfall tax”, a levy on developers who enjoy an increase in the value of their land holdings because of a rezoning decision or the construction of taxpayer funded infrastructure such as a nearby Luas or Metro line.
One Green party source said Gormley had sought this measure more than a year ago. The party is determined to seek safeguards to limit taxpayer exposure under Nama and to reduce the risk of a future property bubble through the application of the tax.
The party’s case will be boosted this week with the publication of the Commission on Taxation report, which includes a windfall tax on developers in its recommendations.
Further cabinet meetings on Nama will take place this week ahead of the recall of the Dail on September 16 to debate the Nama bill. Ministers are hoping that the legislation will pass all stages in the Oireachtas by mid-October.
Green members will gather in Athlone on Saturday to debate their concerns about the legislation. Green ministers and Oireachtas members will deliver a progress report on Nama to the membership and seek views on the elements required in the legislation.
The party will hold a full convention in October to ballot its members on the Nama legislation and the revised programme for government.
Sunday Times
www.buckplanning.ie
Cabinet ministers are studying how to meet Green party concerns over future plans for vast tracts of development land being valued by Nama as part of a move to take €90 billion of impaired property loans off the books of Irish banks.
The Greens are seeking to ensure that portions of the land — which face huge writedowns under Nama — are set aside for building schools, hospitals and community facilities. The government is considering giving extra planning powers to the environment minister in a development bill, not in the Nama legislation.
Eamon Ryan, the communications minister (pictured above), and Dan Boyle, the party chairman, were in talks with Brian Lenihan, the finance minister, last week about the shape of the Nama legislation and related Green party concerns.
Ryan and John Gormley, the party leader, also pressed their demands for Nama-related measures at three separate cabinet meetings last week which were dominated by talks on the complex design of the banking-sector rescue vehicle.
One government source last week said that more than 20 different drafts of the legislation had been circulated to ministers since the first version of the Nama bill in July.
The Greens are also demanding the introduction of a “windfall tax”, a levy on developers who enjoy an increase in the value of their land holdings because of a rezoning decision or the construction of taxpayer funded infrastructure such as a nearby Luas or Metro line.
One Green party source said Gormley had sought this measure more than a year ago. The party is determined to seek safeguards to limit taxpayer exposure under Nama and to reduce the risk of a future property bubble through the application of the tax.
The party’s case will be boosted this week with the publication of the Commission on Taxation report, which includes a windfall tax on developers in its recommendations.
Further cabinet meetings on Nama will take place this week ahead of the recall of the Dail on September 16 to debate the Nama bill. Ministers are hoping that the legislation will pass all stages in the Oireachtas by mid-October.
Green members will gather in Athlone on Saturday to debate their concerns about the legislation. Green ministers and Oireachtas members will deliver a progress report on Nama to the membership and seek views on the elements required in the legislation.
The party will hold a full convention in October to ballot its members on the Nama legislation and the revised programme for government.
Sunday Times
www.buckplanning.ie
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