The National Asset Management Agency is likely to wind up before its original expiry date of 2020, its chairman Frank Daly told The Irish Times yesterday. He said he was "quite optimistic" about Nama achieving a surplus for the taxpayer in the end.

This followed an announcement from Nama that it would redeem another €3 billion in senior bonds within two weeks and a similar amount before the end of 2014.

This means it will have redeemed €15 billion of its €30 billion in senior bonds by the end of 2014, some two years ahead of schedule.

Mr Daly said the early redemptions were possible due to strong cash-generation in 2013, helped by an improved property market in Ireland.

“Our cash position is good and there’s no point in keeping cash on the balance sheet,” he said.

Market recovery
On the early wind-down of the agency, said Mr Daly: "I don't think it will now be 2020. What we're doing is an analysis as to what are the best options [for winding up the agency]."

He said this would include assessing how Nama would release assets for sale and whether the recent recovery in the property market here would “keep going”.

“That’s the call we have to make,” said Mr Daly. The analysis will be completed “within the next couple of months”.

Nama also announced that it would pay a coupon on the €1.6 billion of subordinated debt it issued to participating institutions. The coupon payment will be €84 million.

Mr Daly also outlined plans to offer packaged property portfolios of predominantly Irish assets with a minimum value of €250 million in each quarter of this year.

The Nama chairman said strong investor demand for the loans offered for sale by the special liquidators of the Irish Bank Resolution Corporation meant that little or nothing might now transfer to Nama.

It was thought that the bulk of the near €22 billion IBRC portfolio would transfer to Nama.

“Some might come across,” said Mr Daly, adding that the total should be known by the end of March.

Joint venture opportunities Nama is seeking expressions of interest from “credible counterparties” wishing to invest on potential joint venture opportunities in Ireland.

This could include building 4,500 houses and apartments in Dublin over the next three years, and potentially the development of the Dublin Docklands, where Nama holds a substantial interest in various sites, he said.