€2bn Nama investment aims to create 35,000 jobs

€2bn Nama investment aims to create 35,000 jobs

At least €2bn is to be invested in development projects by the National Asset Management Agency (Nama) over the next four years, it was announced today.

Nama said that the funding will be used to enhance and complete commercial and residential properties and should create up to 35,000 jobs.

It also expects to lend an additional €2bn to investors looking to buy commercial property.

"Given the right opportunities, we pan to invest at least €2bn in Ireland in development capital over the period to 2016," said Nama chairman Frank Daly.

"And we will spend that €2bn on the completion of properties which are currently under development, but more importantly, we will also develop land in anticipation of future supply shortages and demand."

Mr Daly said that the plan has the potential to create up to 25,000 construction jobs and as many as 10,000 additional posts in the wider economy.

The sites earmarked for development are mainly in Dublin, Cork, Limerick and Galway.

"Our view is that long-term prospects for much of this property are good," he said.

"On that basis, we propose to invest, particularly over the next three years, with a view to ensuring that this property is available to meet commercial and residential demand over the rest of the decade.”

He added that the agency had already committed more than €500m in new working capital and development capital advances for projects located in Ireland, and highlighted a number of these including office, retail and residential projects in various locations.

“Our support is not confined to advances of capital," said Daly.

“We have also facilitated the letting of office space by a number of major companies; for instance, we approved funding for fit-out costs to facilitate sizeable lettings to a number of prominent tenants recently.

“We also provide financial support for planning applications and other essential infrastructure activity in various locations”.

It was also announced that 16 properties have been sold and reservations placed on a further 16 units under Nama's 80:20 Deferred Payment Initiative out of the 115 allocated as part of the pilot project, generating €8.4m in the first two weeks.

Nama stated that approximately 9,200 residential units linked to Nama loans are generating rental income from tenants, with 4,000 of these being rented for the first time in the last 18 months, with 700 residential units sold, while a further 4,000 will be "ready to rent or sell in the short term".

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