A key element in NAMA’s strategic planning, by reference to its mandate to achieve the best financial return for the State from the loans acquired by it, is recognition of the need to invest in assets to make them more commercially attractive to purchasers and thereby enhance their ultimate disposal value. NAMA does not own properties and it is not a developer. Rather, NAMA’s remit in relation to properties is, like a bank, that of a secured lender. In this capacity, NAMA facilitates development by funding viable commercial and residential construction projects under the control of its debtors and receivers and, where applicable, in joint ventures with credible investment partners.

To date, NAMA has approved funding of €1.6 billion across a range of construction projects in Ireland. €1 billion of this has already been drawn down to fund commercial and residential construction projects in Ireland, including the completion of existing projects and the development of new projects to meet prospective supply shortages in certain sectors.

These include large-scale projects such as the €65m completion and fit-out of Grade A office space at Grand Canal Square in Dublin’s Docklands; the €14m completion of Block G in Central Park, Leopardstown, Co. Dublin; a mixed-use development on a 20-acre site in Sandyford, south Dublin; and substantial residential developments at, for example, Beacon South Quarter, the Grange and Honeypark in south Dublin; Bracken Park and Diswellstown in north Dublin; Castlepark in Maynooth, Co. Kildare; Forest Hill in Carrigaline, Co. Cork; and Roscam in Co. Galway.

NAMA’s funding is focused, in particular, on meeting current and prospective shortages in the Dublin office and residential sectors and emerging shortages in the other major urban centres. NAMA has indicated that, if required, it could advance a further €3 billion in funding across these two key funding programmes. However, NAMA is open to joint ventures and partnership arrangements which could involve other parties meeting at least some of that funding requirement. NAMA is involved, for instance, as a minority shareholder in a number of Qualifying Investor Alternative Investment Funds (‘QIAIFs’) linked to sites in the Dublin Docklands and the wider Central Business District. It also recently announced a preferred bidder for a long leasehold interest in a key site located at 72-80 North Wall Quay within the Docklands Strategic Development Zone ('SDZ'). This site has the potential to deliver more than 645,000 sq. ft. of Grade A office space, with capacity to accommodate up to 5,500 employees, as well as 200 apartments. Construction is expected to begin in late 2015 / early 2016.

Dublin Docklands SDZ

A core objective of NAMA’s development activities is to facilitate the delivery of office accommodation within the Dublin Docklands SDZ area. The North Lotts and Grand Canal Docks area of the Dublin Docklands was designated as a SDZ in December 2012 and the Docklands SDZ scheme was approved by An Bord Pleanála in May 2014. The SDZ plan divides the Docklands into development blocks. NAMA has an interest in 15 of the 20 development blocks identified in the Dublin Docklands SDZ and has developed detailed strategies for these blocks. Cumulatively NAMA has an exposure to 16.74 hectares (41.25 acres) - 75% of the 22 hectares of developable land in the Dublin Docklands SDZ area.

From an initial appraisal exercise, it is estimated that up to 3.8m sq. ft. of commercial space and 1,950 apartments could potentially be delivered if all the sites in which NAMA has an interest were to be fully developed over the lifetime of the Dublin Docklands SDZ scheme.

Following the approval of the Dublin Docklands SDZ in May 2014, NAMA intensified its preparatory work in relation to the sites in which it has an interest. This is illustrated by a number of SDZ initiatives announced in 2014 in which NAMA is directly involved:

• NAMA is funding a planning application to Dublin City Council for the development of the landmark Boland’s Mill site in Dublin’s south Docklands. The application submitted by the site’s receivers includes proposed office, residential, cultural and retail development, totaling almost 400,000 sq. ft.


• NAMA is a minority shareholder in a fund – the South Docks Fund - which submitted a planning application to Dublin City Council for the development of over 450,000 sq. ft. of office and residential accommodation at 5 Hanover Quay and 76 Sir John Rogerson’s Quay in the Docklands. Planning has been approved and the new developments are expected to accommodate up to 2,400 employees and 158 apartments.


• NAMA is also a shareholder in another fund - the City Development Fund – which has recently begun the construction of a new building, comprising 50,000 sq. ft. of office space, at 6-8 Hanover Quay. The building is entirely pre-let to US corporation, Airbnb. When completed, the new office development will accommodate 300 staff in Airbnb’s new European headquarters. NAMA is providing construction finance to the City Development Fund and practical completion is expected by early 2016.


• In December 2014, NAMA announced Oxley Holdings Limited as its preferred bidder for a key site located at 72-80 North Wall Quay. Under the transaction, Oxley has acquired a long leasehold interest with the right to develop, manage and realise the site. NAMA retains the freehold interest and will receive a secure income stream in addition to a percentage of any future sales proceeds.


• NAMA also entered into a joint venture with Kennedy Wilson in December 2014, where adjoining sites owned by NAMA and Kennedy Wilson were combined and a fund created, structured as a QIAIF, which is authorised by the Central Bank of Ireland. The fund, KW Irish Real Estate Fund VIII, submitted a planning application in April 2015 to Dublin City Council seeking permission to develop 313,000 sq. ft. of office space and 204 apartments in the Dublin Docklands. The development has been branded as “Capital Dock” and is located on Sir John Rogerson’s Quay in Dublin 2.

Residential development funding in Dublin

As part of its contribution to addressing emerging residential supply shortages in the Greater Dublin area, NAMA established a dedicated Residential Delivery team in April 2014. The team’s purpose is to co-ordinate and drive the delivery of NAMA’s commitment to facilitate the completion of 4,500 new residential units in the period to the end of 2016 and to assess the scope for delivery of additional units thereafter. Of the 4,500 target, 1,362 units were delivered in 2014, across 23 individual projects, against a target to end-2014 of 1,000.

New projects for which NAMA funding has been approved and which are expected to commence in 2015 include:

• College Square, Terenure, Dublin 6


• Ballygossan Park, Skerries, Co. Dublin


• Diswellstown, Dublin 15


• Waterside, Malahide, Co. Dublin


• Coill Dubh, Malahide. Co. Dublin


• Anglesea Road, Ballsbridge, Dublin 4


• Thormanby Road, Howth, Co. Dublin


• Dublin Road, Shankhill, Co. Dublin


• Hazelbrook, Nutgrove Avenue, Churchtown, Dublin 14


• Meadowvale, Arklow, Co Wicklow


• Piper’s Hill, Naas, Co Kildare


• Roseberry Hill, Newbridge, Co Kildare


• Heidelberg, Knockrabo, Dublin 14


• Maoilín, Ballymoneen Road, Galway

TABLE 3: Examples of NAMA-funded residential units

Residential development funding in London

NAMA’s dual strategy in London, where demand and prices have remained favourable since 2010, has involved taking advantage of opportunities to sell completed investment assets at very strong yields, whilst at the same time funding new residential construction on undeveloped sites in key city locations. In line with this strategy, NAMA has funded a number of significant residential developments in London. This strategy is based on the superior returns which will be achieved from completed developments by comparison with the returns that would be achieved from the sale of undeveloped sites.