The National Asset Management Agency (Nama) has generated €111 million in cash since the beginning of the year, as the agency expects to make a surplus transfer of €350 million to the exchequer over the remainder of 2023.
In its latest report for the first quarter of 2023, Nama said that it generated €54 million in cash between January and March of this year, and a further €57 million between 1st April and 23rd June.
It brings to €47.5 billion the total amount of cash generated by Nama since it was set up in 2009 to take over property loans from the Republic’s banks.
Nama recorded a profit of €7 million in the first quarter, with cash and cash equivalent balances of €529 million held at the end of March 2023.
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The agency said that subject to market conditions, it intends to transfer €350 million to the exchequer this year, bringing the total paid to the State to €4.25 billion.
Nama has estimated that its remaining secured land bank could deliver around 15,310 new homes, on top of the 30,699 homes delivered through funding and facilitation by the agency.
However, Nama repeated warnings that commercial viability concerns threaten delivery of housing developments on a number of sites.
“From Nama’s perspective, disruption to market and construction activity in Ireland has the potential to impact the pace at which Nama’s portfolio reduces in 2023 and later years,” the agency said.
Nama said that 333 units currently have funding approved, but the funding may not be advanced as it is subject to commercial viability which “continues to be a significant challenge”.
It added that development at some of the sites secured to Nama may currently be inhibited by constraints such as interest rates, infrastructure and planning permission.
Nama is planning to wind down its work by December 2025, and in its latest report reiterated that it expects it will deliver €4.9 billion to the Exchequer by the end of its lifetime, between a projected total lifetime surplus of €4.5 billion and projected total tax payments of €400m.
The agency said it continues to make “significant progress” in facilitating the delivery of 4.2 million square feet of commercial space and 2,183 residential units across 15 sites in Dublin’s Docklands. By March 2023, approximately 99 per cent of Nama’s original interest in the Docklands Strategic Development Zone has been completed or sold.
At the end of June the agency disposed of its 20 per cent stake in Ventures DAC (PV), which owns a key site within Poolbeg West Strategic Development Zone (SDZ) that has the potential to provide up to 3,800 residential units. The site has received planning permissions from Dublin City Council for 894 residential units, with the first phase of construction commenced in May 2023.
