NAMA estates: why aren't they developed yet?

"NAMA does not own properties. Rather, NAMA, in its capacity as a secured lender, facilitates development via funding for viable commercial and residential development projects under the control of its debtors and receivers"

The fantastic NAMA Winelake website is no more, so perhaps somebody here knows why NAMA, through its debtors, is sitting on so many estates in the Dublin area and not developing them when the shortage of housing in this area is supposed to be a government priority?

At the weekend I went to see a house in a new estate in Dunshaughlin. While speaking to the auctioneer I asked about the eyesore on the main Dublin-Dunshaughlin road - this development, 'The Willows'. The developer (Blackchurch Homes/Stanley) began it in August 2010, nothing has happened since 2011 when the bank apparently refused to give 'Deeds of Temporary Release' and indeed deposits were returned. The auctioneer, who is somebody in the know, said NAMA has taken over the development. This development is supposed to have 282 homes so it's big enough to help ease the pressure in this area, and also help the local economy. In September 2014 NAMA identified this site as being "shovel ready" but nothing has happened since.

What vested interests are keeping NAMA from developing and disposing of these properties? Do you know of any other estates for which NAMA is the secured lender that are not being developed?

snubbleste

NAMA Mission Statement

To manage acquired loans, efficiently, effectively and expeditiously and in the best interests of the State. NAMA aims to attain the best achievable financial return subject to acceptable financial risk. It will conduct its activities in a way which assists the property market to operate efficiently and in a way which achieves longer term sustainability while taking account of NAMA’s wider societal objectives.

List of Nama properties

snubbleste

snubbleste wrote: »

List of Nama properties

Good link to the list of properties. I see from that link that some of my neighbours' properties are in NAMA.

At any rate, if they're going to in effect land hoard on sites next to urban centres where there is a demand for housing, surely the local authority have something in the planning permission clause which will result in land hoarding nullifying the permission? Indeed, if land hoarding until the price goes up is the policy, surely it is negligent of the local authority to renew the planning permission and that local councillors have a duty to ensure planning permission is not renewed for such developers? That would reduce their land value quicksmart and get them building without delay.

newacc2015

Former NAMA sites are being developed in the City. Look at all around the IFSC and around Google. The planning has been submitted and the land is being developed.

The NAMA estates you listed arent being developed, as they arent profitable enough. Why would you build a generic 3 bed Semi-D in Navan, when you can make twice as much building a new apartment in the IFSC? There is no vested interests at play. You are seeing economics work, if there isnt enough profit, the product ie houses wont be supplied.

Another issue is finance. You cant call you Anglo anymore and ask for a blank cheque on a new development. It is expensive and requires a large down payment to develop sites currently. A lot of developers are asset rich and cash poor. Some cant build even if they wanted to

newacc2015

newacc2015 wrote: »

Former NAMA sites are being developed in the City. Look at all around the IFSC and around Google. The planning has been submitted and the land is being developed.

The NAMA estates you listed arent being developed, as they arent profitable enough. Why would you build a generic 3 bed Semi-D in Navan, when you can make twice as much building a new apartment in the IFSC? There is no vested interests at play. You are seeing economics work, if there isnt enough profit, the product ie houses wont be supplied.

Another issue is finance. You cant call you Anglo anymore and ask for a blank cheque on a new development. It is expensive and requires a large down payment to develop sites currently. A lot of developers are asset rich and cash poor. Some cant build even if they wanted to

Why can't they do both? Those 282 homes that should be in that estate in Dunshaughlin would sell very quickly at the price they were initially seeking, and indeed for much more now. They would be self-financing within a year as there is a shortage of such houses (the new estate across the road sold out very quickly). The worrying thing is that the refusal of NAMA to fund the completion of this state seems to indicate that NAMA thinks prices will go back to Celtic Tiger prices, or at least that residential prices have much more to rise.

Atlantic Dawn

There's no point in building houses now to flood the market while they can flog off existing stock at crazy prices.

Aka Ishur

Helping people isn't namas job, their brief is to get as much money as possible back into the states pocket. As it should be.

newacc2015

Deleted User wrote: »

Why can't they do both? Those 282 homes that should be in that estate in Dunshaughlin would sell very quickly at the price they were initially seeking, and indeed for much more now. They would be self-financing within a year as there is a shortage of such houses (the new estate across the road sold out very quickly). The worrying thing is that the refusal of NAMA to fund the completion of this state seems to indicate that NAMA thinks prices will go back to Celtic Tiger prices, or at least that residential prices have much more to rise.

NAMA is a not a developer and never has been. Why would a private developer build houses and sell at cost(probably below cost), when he make a significantly higher margin in the city centre(they can actually make a profit)?
You arent going to make a whole lot money in Meath versus building in Dublin.

The priority of NAMA is to maximise the return for the tax payer. Currently that can be done in Dublin City, where you can sell office blocks for a significant amount of money.

skimpydoo

newacc2015 wrote: »

The priority of NAMA is to maximise the return for the tax payer. Currently that can be done in Dublin City, where you can sell office blocks for a significant amount of money.

As Mick Wallace and numerous others have shown this is not the case.

The_Conductor

skimpydoo wrote: »

As Mick Wallace and numerous others have shown this is not the case.

Its all smoke and mirrors.
NAMA can make a profit- because they didn't pay boom time prices for the loans associated with their assets- they got some of the loans at as little as under 50c in the Euro- whereas Mick Wallace and some other developers- badly timed some of their purchases.

The_Conductor

snubbleste wrote: »

NAMA Mission Statement

List of Nama properties

A shedload of those properties- esp. the Dublin ones- are single dwellings- not estates. Sure there are some development opportunities there- however, they are very much in the minority.