Nama has now redeemed a total of €16.6bn, or 55%, of the senior debt issued by the agency in the midst of the financial crisis in 2009 to acquire loans.
Yesterday’s announcement means Nama has now repaid €9.1bn in senior debt this year.
The agency has been able to redeem its senior debt at a quicker rate than previously thought as a result of the improving economic conditions which has helped it pass the halfway mark well in advance of the original 2016 target — by which time it expects to have redeemed 80%.
The agency also announced Singapore-headquartered Oxley Holdings as the preferred bidder to develop a key 2.35 hectare site in the Dublin Docklands, alongside the proposed new headquarters of the Central Bank.
The value of the deal was not disclosed by Nama.
Oxley beat off a number of rival bidders, including the former head of Treasury Holdings, Johnny Ronan, to secure the site at 72-80 North Wall Quay following the completion of Project Wave — a six-month competitive tendering process involving a total of six Irish and international investors.
The Oxley proposal comprises the development of more than 60,000sq m of Grade A office space with capacity for up to 5,500 employees and the delivery of more than 200 apartments in Dublin’s north Docklands.
Commenting on the announcement, Nama chief executive Brendan McDonagh said: “This transaction with Oxley will facilitate the provision of much-needed high-quality Grade A office space that will lead to further job creation, investment and economic activity in the Dublin Docklands, while maximising the value of this site for Nama.”
The terms of the deal will see Oxley proceeding to acquire a long leasehold interest with the right to develop, manage and realise the site while Nama will retain the freehold interest resulting in an income stream as well as a percentage of any future sales proceeds.
The North Wall Quay site is located within Block 8 of the Docklands Strategic Development Zone (SDZ) Planning Scheme.
The planning application stage of Project Wave will likely commence in early 2015 with construction anticipated to begin late in the year or early-2016.