NAMA announces details of Docklands and residential funding programmes
The National Asset Management Agency (NAMA) has announced details of a major funding programme that aims to deliver almost 4 million square feet of new commercial space in Dublin Docklands and 20,000 new homes in Dublin and other areas of strong demand. The residential programme will require total funding of €5.6 billion with peak funding expected to be €1.8 billion – the proceeds from the sale of completed projects will be recycled to fund new commercially viable projects. The Docklands development programme will require total funding of €1.9 billion with peak funding up to €500m.
In an effort to de-risk these programmes and to maximise the contribution of the alternative funding, development and construction sectors, NAMA will look for JV partners interested in the co-funding and construction of projects. With that in mind, NAMA will formally seek, in January 2016, ‘expressions of interest’ from potential partners for its residential delivery programme.
In line with NAMA’s obligations under Section 10 of the NAMA Act, all projects will be required to pass a stringent commercial viability threshold before NAMA approves funding. The Agency will explore appropriate financing options for each site to establish the best financing mechanism specific to each. These options include NAMA funding all of the construction work required; co-funding with other lenders; or establishing project-specific joint ventures with major investment or construction groups. NAMA will also work with non-NAMA building platforms.
The funding programme is expected to generate up to 30,000 jobs when construction is at its peak and deliver commercial space equivalent to approximately double the original IFSC.
NAMA is confident that the new programmes will not affect its plan to redeem all of its senior debt by 2018 and its subordinated debt by 2020. Current projections indeed indicate that the programmes are likely to increase NAMA’s projected terminal surplus (currently estimated at up to €1.75bn) which will be transferred to the Exchequer when NAMA completes its work.
The announcement was made today at the formal launch of NAMA’s funding programme in Dublin, which was attended by Minister for Finance Michael Noonan TD and Minister for Public Expenditure and Reform Brendan Howlin TD, and hosted by NAMA Chairman Frank Daly and NAMA Chief Executive Brendan McDonagh.
The announcement provides detailed information on some of the projects that are included in the two programmes.
Key features of Dublin Docklands SDZ programme:
- 15 major new city blocks
- Almost 4 million square feet of office space
- 66,000 square feet of retail space
- 2,000 new homes
- 13,000 sq. ft. of restaurant space (in schemes granted permission)
- 18,000 sq. ft. of new cultural and community space and high-quality civic plazas (in schemes granted permission or where planning has been submitted)
- 1 major new street
- Building cross-river access to DART rail line from North Dockland
- Building cross-river access to LUAS tram network from South Docklands
- Ireland’s biggest-ever student accommodation block
- Dublin’s tallest office block
