NAMA does not plan to sell properties

THE National Assets Management Agency (NAMA) has told the High Court it has “no current intention” to sell properties in Britain and Ireland of developer David Daly over which it has appointed receivers.

Mr Daly and his children have challenged the agency’s appointment of a receiver over some properties after taking over personal loans of about €457m held by him and his children with AIB.

Last Friday, Mr Daly, his daughter Joanne and son Paul, initiated proceedings to prevent NAMA insisting on repayment of those €457m loans or appointing a receiver over properties.

The case — taken against NAMA, the State and AIB — was returned to yesterday when Mr Justice Roderick Murphy agreed to an application by Michael Cush SC, for the Dalys, and with the consent of James Doherty, for NAMA, to list it on Thursday for mention.

Mr Doherty said NAMA has no current intention to sell properties over which it has appointed a receiver and Mr Daly would receive 24 hours notice of any change in that position. It is expected a date will be sought on Thursday for the hearing of the Dalys’ application for an injunction restraining further steps by NAMA pending the outcome of the full action by the Dalys.

The Dalys claim they are meeting all their obligations, concerning the AIB loans but NAMA had operated on the basis the loans were on demand facilities which could be called in any time. NAMA called in the loans last Wednesday last and gave them until close of business on Thursday to repay all the loans, they complained.

NAMA moved on Friday to appoint Jim Hamilton of BDO Simpson Xavier receiver over a number of Dublin properties, including one on St Stephen’s Green and Airside Business Park, which are held by Mr Daly and his family and are not part of his residential construction business, Albany Homes.

NAMA is also seeking to appoint Shay Bannon and Sarah Rayment of BDO in Britain as receivers to a number of London properties, including two on Bond Street, one of which houses Louis Vuitton’s flagship store in the city, and the other occupied by Mulberry.

In their proceedings, the Dalys are seeking a declaration that credit facilities entered into by them with AIB in July 2007 and February 2008 and transferred to NAMA last year are not repayable on demand.

NAMA’s decision to demand repayment of the facilities is unreasonable and contrary to their constitutional rights, they claim. They also contend certain provisions of the NAMA Act are invalid, unconstitutional and in breach of the state’s obligations under the European Convention on Human Rights.

In an affidavit, David Daly, Estuary House, New Street, Malahide, said the plaintiffs wanted to restrain NAMA taking any steps to seek repayment of the plaintiffs’ credit facilities with AIB and/or to enforce any obligations related to those facilities, including the appointment of a receiver.

Mr Daly set up Manor Park Homebuilders with others and, after being bought out if it in 1995, set up Albany Homes Ltd and Trident Home Builders Ltd. He used Bank of Ireland as banker to Albany while AIB was his personal banker.

The case concerned the plaintiffs’ personal facilities with AIB on foot of which €457m is currently outstanding, he said. The investment strategy agreed with AIB involved the loans being be repaid out of rental income and after tax profits from Albany, he said. Mr Daly said the loans were fully performing with interest being repaid. They were transferred to NAMA in July 2010 and no agreement was reached on a business plan provided by him to NAMA in September 2010.