3 thoughts on “A Green View of NAMA”

  1. Ciaran Cuffe seems to herald NAMA as a wonderful thing – the State becoming the largest landlord in the land, possibly structured as a REIT, a long-term property fund (idea has now been gathering political momentum) that can implement Green Party policies on the National Spatial Strategy through change of use of commercially seized properties.

    Scary stuff. Before the politicians get carried away, perhaps they should look at the largest (dozen or so) REITs listed on the Singapore SE – they’re now yielding 15% (despite average vacancy rates between 15%-40% on their Commercial Property holdings).

    Since Singapore is more advantageously positioned to benefit from the global turnaround – if and when it occurs – than Ireland, it begs the question that if these property funds in the gateway to Asia are yielding investors dividends of 15% why is it that NAMA is expected to purchase impaired loans at such a small discount to book value?

    What discount would NAMA have to use to ensure that Eire Real Estate Investment Trust could pay its shareholders (taxpayers) a prospective dividend of 15%?

  2. “REITs listed on the Singapore SE – they’re now yielding 15% (despite average vacancy rates between 15%-40% on their Commercial Property holdings).”
    Clearly in this instance S.E. returns bear no relation to the underlying economic reality.
    Why should this yardstick be used for the Irish property market?

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