Nama unveils €2bn scheme to develop docklands

Nama will roll out €2bn to develop top-end office accommodation mainly around Dublin’s docklands in an effort to attract foreign direct investment.

The move is an attempt to meet growing demand among financial services companies and new technology firms, said the agency’s chairman Frank Daly.

Speaking at a lunch organised by the Association of European Journalists, Mr Daly said: “We hold security over a considerable number of properties and lands on both sides of the River Liffey and are currently assessing the commercial feasibility of a wide range of projects — not least those in the undeveloped part of North Wall Quay in the north Docklands.

“The Dublin docklands has been a marked success from an investment perspective, already accommodating over 40,000 employees in the technology, banking, financial, commercial law and other service sectors.

“The area is expected to require significant new development over the medium term, particularly of commercial office space, to accommodate the continued expansion of the financial services sector and the creation of new business and technology hubs in the wake of the move by companies such as Google and Facebook to the area.”

The IDA has cited the lack of suitable office accommodation in Dublin as a constraining factor in its attempts to attract foreign direct investment.

The timing of the Nama investment in the docklands’ region hinges on the resolution of planning and infrastructure issues that are currently before the Environment Minister Phil Hogan, noted Mr Daly.

He welcomed the decision to make part of the docklands a strategic development zone.

He said one of the features of the construction boom in this country was the mis-match in supply and demand for housing throughout the country.

He recommended that a central entity — with a national remit — is created that would co-ordinate the future supply of residential housing with areas of greatest demand.

Nama was set up in 2009 to take over the larger development loans from the banks. It paid €32bn for €74bn of loans. The agency has approved €11bn of sales since its inception while €7bn of these have been completed.

Moreover, 80% of completed sales have been in Britain — reflecting more favourable market conditions, said Mr Daly.

Two significant portfolios with a combined value of €1.1bn are currently up for a sale and are attracting “significant interest.”