Cantillon: Nama’s London sell-offs could yet prove timely

The National Asset Management Agency has been criticised in the past for selling out the London market too quickly. Attention has focused on two development sites in particular: the former Battersea Power Station site which came its way via Treasury Holdings, and the Audley Square car park in Mayfair, which was linked to Derek Quinlan. They were among the first assets sold by Nama.

In both cases the agency was reported to have made a significant profit when the discount it paid for the underlying loans was taken into account. But both deals were also seen to have a wider significance, signalling that Nama could and indeed would shift its property assets.

The buyers of the two sites are now planning very large projects and if they have got their numbers right then Nama may indeed have missed out. But it is a very big "if", according to Andrew Langton, chairman of luxury property broker Aylesford International, who suggests Nama may have dodged a bullet. Langton told Bloomberg this week the new owners may "be caught with their trousers down".

He said there is a glut of properties in Mayfair with more than 440 on the way, not including John Caudwell’s plan to turn Audley Square into six houses, three penthouses and 21 luxury apartments.

Demand has been dampened by the general election, with talk of tax increases and, in particular, a mansion tax should Labour return to power.

Not to mention Ed Miliband's pledge to abolish non-domicile status. Sentiment has not been helped by turmoil in Russia and the Middle East.

All of this is grist to Nama’s mill. It’s much easier to justify selling out of the UK market when the market is wobbling than when the people you sold to look set to make a killing.