16/04/2010
Developers Should 'Prepare' For NAMA
Local property developers have been urged to prepare for impending demands for an asset-related business plan.
The Construction Employers Federation (CEF) and business advisory firm, Grant Thornton have said that local developers and contractors should start preparing their business plans in the expectation that the National Asset Management Agency (NAMA) could move as early as next month to examine asset-related loans in Northern Ireland.
Michael Neary, Corporate Finance Partner with Grant Thornton was speaking recently at a 'Preparing for NAMA' seminar in Belfast.
Mr Neary, who is already advising a number of property developers in Dublin, said local businesses could not afford to "sit on their hands" because of the wide ranging powers of NAMA and potential impact of the agencies decisions.
He said: "NAMA will expect borrowers to prepare a detailed business plan and provide full disclosure.
"This means also looking at the assets and realistically planning on what can be done. The quality of a borrower's business plan will have a major bearing on NAMA's decision making process and every borrower will have an opportunity to present an updated business case.
"Time is now critical and it is incumbent on property developers in Northern Ireland to focus, prepare and plan in the expectation that local development loans could be part of the second tranche of loans to be bought from the participating banks in the next few months.
"Being proactive is vital and developers can't afford to sit on their hands," he said.
Developers will be expected to submit detailed business plans within 30 days after NAMA has acquired their loan.
Mr Neary explained that following NAMA's review of each developer’s business plan, and a financial review by an independent advisory firm, a decision will be taken whether to accept the plan, refer the developer to amend or revise the plan, or whether to reject it.
"If the plan is approved, NAMA will continue to work with the borrower and the borrower's subsequent performance will be monitored against the targets set out in the business plan," he added.
"In cases where the plan is rejected, or the borrower does not cooperate, NAMA will initiate the enforcement process."
Mr Neary said he was surprised that none of Northern Ireland's property developers featured in NAMA's first tranche of loans which represented ten of the largest loans valued at £16 billion.
(NS/BMcC)
The Construction Employers Federation (CEF) and business advisory firm, Grant Thornton have said that local developers and contractors should start preparing their business plans in the expectation that the National Asset Management Agency (NAMA) could move as early as next month to examine asset-related loans in Northern Ireland.
Michael Neary, Corporate Finance Partner with Grant Thornton was speaking recently at a 'Preparing for NAMA' seminar in Belfast.
Mr Neary, who is already advising a number of property developers in Dublin, said local businesses could not afford to "sit on their hands" because of the wide ranging powers of NAMA and potential impact of the agencies decisions.
He said: "NAMA will expect borrowers to prepare a detailed business plan and provide full disclosure.
"This means also looking at the assets and realistically planning on what can be done. The quality of a borrower's business plan will have a major bearing on NAMA's decision making process and every borrower will have an opportunity to present an updated business case.
"Time is now critical and it is incumbent on property developers in Northern Ireland to focus, prepare and plan in the expectation that local development loans could be part of the second tranche of loans to be bought from the participating banks in the next few months.
"Being proactive is vital and developers can't afford to sit on their hands," he said.
Developers will be expected to submit detailed business plans within 30 days after NAMA has acquired their loan.
Mr Neary explained that following NAMA's review of each developer’s business plan, and a financial review by an independent advisory firm, a decision will be taken whether to accept the plan, refer the developer to amend or revise the plan, or whether to reject it.
"If the plan is approved, NAMA will continue to work with the borrower and the borrower's subsequent performance will be monitored against the targets set out in the business plan," he added.
"In cases where the plan is rejected, or the borrower does not cooperate, NAMA will initiate the enforcement process."
Mr Neary said he was surprised that none of Northern Ireland's property developers featured in NAMA's first tranche of loans which represented ten of the largest loans valued at £16 billion.
(NS/BMcC)
Related Northern Ireland News Stories
Click here for the latest headlines.
15 November 2024
New £4.3m Grant To Boost Business Innovation
Economy Minister Conor Murphy has launched the Business Innovation Grant (BIG), a new £4.3 million initiative designed to stimulate innovation and enhance productivity among Northern Irish businesses. The scheme, developed by Invest Northern Ireland and delivered in partnership with Innovate NI, is open to micro-businesses, sole traders, and SMEs.
New £4.3m Grant To Boost Business Innovation
Economy Minister Conor Murphy has launched the Business Innovation Grant (BIG), a new £4.3 million initiative designed to stimulate innovation and enhance productivity among Northern Irish businesses. The scheme, developed by Invest Northern Ireland and delivered in partnership with Innovate NI, is open to micro-businesses, sole traders, and SMEs.
03 February 2011
NAMA 'Disappointed' Over Court Victory
The top executive in Ireland's toxic assets management agency has this morning described a ruling in favour of developer Paddy McKillen by the Supreme Court as "disappointing". Mr McKillen, who is originally from Belfast, won his appeal against the transfer of €2.
NAMA 'Disappointed' Over Court Victory
The top executive in Ireland's toxic assets management agency has this morning described a ruling in favour of developer Paddy McKillen by the Supreme Court as "disappointing". Mr McKillen, who is originally from Belfast, won his appeal against the transfer of €2.
07 October 2002
Harland & Wolff confirm 265 jobs set to be axed
Harland & Wolff have today confirmed media reports circulating over the weekend that jobs are to go at the east Belfast shipbuilder. The company announced that 265 redundancies will be made. It also confirmed it has entered a 90-day consultation period with unions.
Harland & Wolff confirm 265 jobs set to be axed
Harland & Wolff have today confirmed media reports circulating over the weekend that jobs are to go at the east Belfast shipbuilder. The company announced that 265 redundancies will be made. It also confirmed it has entered a 90-day consultation period with unions.
14 May 2010
NAMA Move Welcomed At Stormont
There has been a welcome for an announcement by the National Asset Management Agency (NAMA) confirming the establishment of its NI Advisory Committee.
NAMA Move Welcomed At Stormont
There has been a welcome for an announcement by the National Asset Management Agency (NAMA) confirming the establishment of its NI Advisory Committee.
09 June 2008
Belfast's Bid For A Stadium Unveiled
Belfast City Council has unveiled its case for a multi-purpose sports stadium in the Province's capital. Five potential sites in the city have been short listed by the council.
Belfast's Bid For A Stadium Unveiled
Belfast City Council has unveiled its case for a multi-purpose sports stadium in the Province's capital. Five potential sites in the city have been short listed by the council.