NAMA land to revert to farming values

LAND seized from Irish developers and now the subject of enforcement order via receivers and liquidators has been marketed by NAMA — and much of it will revert to farmland values when sold.

Last week, NAMA published a list of 850 properties controlled by a range of receivers, much of it up for sale for a fraction of the price paid for it during the speculative decade of boom.

It includes farmland sold in deals worth up to €6 billion, and traded in some cases for development value, sometimes for millions per acre.

The long list put on the NAMA website last week (see www.nama.ie/Enforcements.php) doesn’t include other lands owned by a myriad of developers in NAMA, but for which no enforcement proceedings have been issued.

More land is due to be added to the tally in the coming months, according to NAMA.

In many cases, they’ve admitted, the land sold for premium prices will never be developed, and may have to be sold back for farm land values. Even partly developed land could go back to farm use if there’s no remaining development potential.

Irish Examiner Farming is aware of one of last week’s specified Munster NAMA holdings with a receiver appointed that sold for over €6 million, and where the farmer who sold it is keen (and still in a position) to buy it back for a fraction of that price — likely to be well under €250,000.

The list of 850 properties spans thousands of acres in Ireland and further afield, and includes hundreds of acres per individual county.

It includes quarries, forestry and infrastructure — such as land at Marino Point near Cobh, where some former NET/IFI land was sold a few years ago, used as a replacement golf course. Efforts to sell the 114-acre shipping/industrial facility haven’t yet worked.

Co Cork holdings with enforcement orders and receivers in situ revealed by NAMA last week include quarries in Glanworth, Mallow and Timoleague.

There are also quarries in Co Clare at Daragh, Fountain Cross and Kilrush, and land at Belharbour and Ballaghaboy. There’s Co Limerick land at Moyard, North Circular Road, Raheen and Fedamore, plus Kerry farmland at Rathmore and Kenmare.

In Cork, land subject to enforcement and listed by NAMA includes locations at Ballinhassig, Blarney Business Park, Gullanes, Marino Point, Codrum, Lisavaird, Macroom and Mitchelstown.

Auctioneers say land will be traded back to farmers at prices from €8,000 to €20,000 per acre, achieving the latter end of the scale if there’s future hope value. NAMA says it won’t facilitate fire sales, but it won’t hang land speculatively where there’s no hope of added value.

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