The National Asset Management Agency plans an investment of up to €450 million to build 1,500 new homes this year for private sale as the “bad bank” steps up efforts to tackle the shortage of supply in Dublin and its hinterland.
Although Nama has also pledged to make 1,000 properties available for social housing in 2015, data shows that local authorities in Dublin and elsewhere in the State are taking up less than half the properties the agency has already made available to them.
“Nama made just over 1,900 houses and apartments available in Dublin, of which 742 have been taken up for social housing.”
The agency generated €8.6 billion in cash last year and paid off €9.1 billion of its senior debt so 55 per cent of the debt issued when Nama’s work started has been redeemed. The 50 per cent target was passed in 2014, two years ahead of target. “Last year was a tremendous year in terms of cashflow generation and accelerated debt paydown,” said Nama chairman Frank Daly and chief executive Brendan McDonagh.
Faced with an acute scarcity of bank credit for new housing, Nama resolved in 2014 to provide funding for developers to build as many as as 4,500 houses and apartments by the end of 2016. The agency provided some €300 million for this purpose last year from its own resources, it is understood.
“The end-2014 delivery target of 1,000 units has been exceeded; it is expected that another 1,500 residential units will be delivered in 2015 with the residual to be delivered in 2016,” Nama said in a year-end statement.
This points to a further escalation of activity in 2016, with funding in play to build another 2,000 homes. Nama has also sought planning permission under a special scheme for a big redevelopment of the Boland’s Mill complex in the south Dublin docks.
Nama’s deepening involvement in the development of new homes comes amid a shortage of supply, which has led to a sharp rise in Dublin prices and to increased demand for social housing.
The agency, which has set up a special vehicle to provide properties for social housing, said more than 1,000 housing units were delivered for that purpose in 2014. The same number of units would be delivered this year “on the assumption that local authorities and approved housing bodies confirm their intention to buy or lease the properties”.
Nama said it had identified more than 5,700 properties for social housing, but local authorities have only confirmed demand for some 2,200 properties with a further 187 under evaluation. According to Nama, Fingal County Council has confirmed demand for 80 of the 231 properties which the agency has made available and 44 properties have been delivered.
South Dublin County Council confirmed demand for 115 properties from 575 made available, with 48 delivered.
At Dún Laoghaire-Rathdown County Council, there was demand for 130 of the 321 available properties and 93 were delivered. Dublin City Council confirmed demand for 473 of 813 available properties and 328 were delivered.
Nama’s statement said cash generation in 2014 brought the total cash generated since its 2009 inception to €23.7 billion. The agency executed €7.8 billion in loan and assets sales in 2014, totalling €18.7 billion since inception.
The agency said more than 1,000 Irish jobs were saved as a result of its support for companies through the examinership process.
