‘Nama Sold A Site Worth €120m For €42.5m’

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You’ll recall a post from earlier concerning a Dáil debate about the establishment of Commission of Investigation into Nama.

During his opening statement, before leaving the Dáil chamber, Minister for Finance Michael Noonan said:

Throughout the Opposition’s statements today, there may well be bounds for other Nama transactions to be reviewed…I have little doubt that the calls to change Nama’s mandate, or even halt Nama’s activities, will continue. A change of mandate is outside the scope of a Commission of Investigation but it will attempt to summarise the position as, unfortunately, public discourse rarely captures what the agency can and cannot do.”

Following this.

People Before Profit TD Richard Boyd Barrett told the Dáil he received a folder on Monday concerning a site in Spencer Dock, Dublin 1.

He said:

“That is a site that was originally to be developed, owned by CIE, developed by, it was going to be developed by Treasury Holdings, who couldn’t get…I rang Nama today to try and get the par value of the original loans, pertaining to the site and they couldn’t give me the answer. They said they might get back to me. But the, we’re talking in the hundreds and hundreds of millions.

“And that site is now commencing development again and it’s being talked about as being a €600million development. The developer, although Nama would not confirm this to me, and I asked them on the phone: who bought the site? Because we know from the last act that the original developers were not supposed to get their own loans back. Or that the sites, if you like, that, the sites pertaining to those loans. But the original developer was Treasury Holdings and it was reported, in October of last year, that Johnny Ronan, formerly of Treasury Holdings, was the preferred bidder in the bidding process which was launched last February 2016, where that portfolio, or that site, was put out on the market at a guide price of €50million, owned by CIE.

“But, CIE had an arrangement with Treasury Holdings. An arrangement was very seriously questioned and criticised at the time by Minister [Mary] O’Rourke, subsequently by Deputy [Pat] Rabbitte where there was, in fact, a report ordered by Minister O’Rourke into the whole deal between CIE and Treasury Holdings, on the grounds that Minister O’Rourke, at the time, and others, believed there were serious questions as to whether the public interest had been served in the deal that had been done between CIE and Treasury Holdings – as all CIE were going to get, for their site, was 17% of the sale value of any development or 17% of the rent. The rest was to go to Treasury Holdings, Johnny Ronan, [Richard] Barrett and so on.

“They obviously, they went into Nama – owing I think it was €2.6billion in total for Treasury Holdings, €1.67billion went into Nama.

“Now, the first question I have is: Johnny Ronan exited Nama, apparently paying off his €250million debt, but he now has the site again. Right? €250million, not €1.6billion, I don’t know exactly the breakdown in Treasury Holdings’ debt, but he has the site again.

The guide price, €50million for that six-acre site. Now, comparisons of similar sites on the open market at the moment will suggest that per acre you should be paying around €20million per acre which is €120million. Not the reported, although I couldn’t get this confirmed by Nama either, the reported €42.5million that Ronan, backed by Colony – a big investment fund – who refinanced Ronan’s loans, are reported to have paid, although I can’t get the answer from Nama which I find extraordinary when I rang them this morning, ‘we can’t tell you how much was paid for the site, we can’t tell you who bought it’.

“But it was reported, in October, that it was €42.5million and it was Johnny Ronan, backed by Colony who bought it. Now if that’s true, if the comparable prices, per acre, are in the region of €20million – then it means we have sold a site, Nama sold a site worth €120million for €42.5million. That’s shocking. Absolutely shocking. And the developer who now has it, is the developer who originally went into Nama back in, when Treasury Holdings were taken over by Nama.

“At the time, just on the valuations, back in 2002, per acre down the [Dublin] docklands was €8m-€14million – that’s in 2002. Right? So, it’s very reasonable to assume that in the last surge in property values since then, that €20million is a reasonable valuation.”

Meanwhile…

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Independents 4 Change TD Mick Wallace also spoke during the debate, addressing his concerns to Fine Gael TD Andrew Doyle (above) as Minister Noonan had left the chamber.

Mr Wallace said he’s seen an affidavit made by former Nama employee Enda Farrell who, last year, was given a two-year suspended sentence after he was found to have leaked potentially sensitive information – and said the affidavit was “worrying”.

Amongst other things.

Mr Wallace said:

“Minister, this was moved from Thursday to Wednesday so Minister Noonan could be here. He’s not here. Now his contribution at the start was pathetic. The contribution that the PAC, chairman, wasn’t much better.

“The notion that the PAC are an investigative body is total rubbish. The C&AG [Comptroller and Auditor General] looked at one dimension of one sale and the PAC are looking at it. They can’t access Nama’s papers. They can’t possibly hold Nama to account. Nama went into the PAC eight times now and they said what they liked. It’s absolute rubbish.

“It’s four months since the Taoiseach agreed to establish a Commission of Investigation into the secret society that’s Nama. Since then, Nama have sold over €4billion in par value of loans to vulture funds and almost €3million worth of this loans went to their good friend Cerberus. I agree that the commission should begin with examining Project Eagle as its first module but the problems in Nama are sadly not unique to Nama’s northern Ireland loan portfolio. It’s imperative that any commission adopts a modular approach, similar to the IBRC investigation.

The allegations made by Enda Farrell – a former Nama staff member – should be the second schedule. It seems Nama may have internally investigated some of Nama’s officials named by Farrell in his affidavit – who may have leaked confidential information or engaged in malpractice. These internal investigations should be made available to the commission. I have read his affidavit and I can tell you it’s worrying.

“The third module should look at the establishment of Hibernia REIT. Set up in 2013, following a three-year stint at Nama by one of its founders. But it seems the company was in the planning for a long time before that. Some businessmen on the east coast of the US were briefed on Hibernia REIT’s arrival as early as 2011. Kevin Nowlan is on the record as saying we know enough people in Dublin to be able to go buy properties in Dublin without having to go to auction, of having to go onto the market.

“If one looks at the assets they have purchased, the links back to Nama begin to appear. The forum building, the Dublin Observatory building, Harcourt Street, Windmall Lane, New Century House, the Central Quay – all these assets were in Nama and are now in the hands of Hibernia REIT, either through direct purchases or secondary deals.

“A fourth module should consist of an examination of any internal Nama investigations into Nama officials regarding the leaking of confidential information or alleged malpractice. And if the judge sees fit, to investigate any other allegations of unauthorised leaking.

“The Commission of Investigation should provide this initial report on Project Eagle within six months and the remaining modules within 12. And, most importantly, any report that’s made should be made public.

“Before I move back to Project Eagle, I would just like to put on the record that the Comptroller and Auditor General’s role, in relation to Nama, has been abused by the Government. The Taoiseach, at one stage, tried to tell us that the C&AG had staff within Nama, this had to be rebuked by the C&AG who said, ‘an impression being given that everything that moves in Nama is seen by, and examined, by somebody from my office is absolutely incorrect’.

Minister Noonan recently tried to tell me that the C&AG would have called for a halt to Nama’s activities – had he felt it was warranted. Again, the C&AG rebuked it. He said that it was prohibited from expressing an opinion on the merits of policy.

“On an aside, I’d like to tell the minister that Cormac Butler, a financial consultant and a member of the Namaleaks team, has pointed out that Nama may not even hold a legal title to the assets transferred over from the Irish banks in 2009, given that when a bank is insolvent, the ECB automatically acquires control of its assets. If that is the case, it would mean that the ECB, not Nama, is the owner of the loans.

“We’ve been raising some of these issues with the minister and his department since last August but to little avail. Cormac Butler has also been making the point that when Wilbur Ross  – Donald Trump’s secretary of congress nominee – purchased Bank of Ireland shares in 2011 and then flipped them in 2014, for a profit of €477million, he did so with the advantage of having access to the financial position of the bank which was not in the public domain, information which was not available to smaller shareholders.

I’d like the minister to confirm or deny that his, that his officials are now aware that the activities of Wilbur Ross and his sale of Bank of Ireland shares is the subject of an investigation in the US. They do an odd one over there. They’re a little bit more fond of it than we are.

“To go back to Project Eagle. The sale stinks from start to finish. In late 2016, we travelled to Asia to meet a businessman named Barry Lloyd who had contacted us through our whistleblower site, Namaleaks.

“As early as December 2010, Frank Cushnahan had been trying to sell the Nama loan portfolio in one lot. He met with Barry Lloyd and told him he had been heavily engaged by Nama and that there were very substantial opportunities for major returns for anyone who could access international funds to acquire blocks of development assets from Nama.

“Barry continued to meet and engage with Cushnahan and representatives from Tughan’s solicitors throughout 2011 – with a view to secure Asian investors – but the proposed deal eventually fell through in April 2012. Barry Lloyd has signed an affidavit in the last week in Dublin and has met with the NCA [Britain’s National Crime Agency].

“In November 2012, Brown Rudnick met Cushnahan and Ian Coulter at Tughan’s office. By February 2013, they were sitting down with [Northern Ireland’s] Finance Minister Sammy Wilson. April 2013, Pimco were on the scene. By May 2013, they were meeting Peter Robinson. When Pimco was informed by Brown Rudnick that it was the northern Irish government’s preferred purchaser of Nama’s northern Irish loan portfolio, and still not even a price on it.

“We’re told that they didn’t meet Ronnie Hanna until September 2013. By December 2013, Hanna was haggling for an exclusive deal with Pimco, I wonder why. We then had some role-playing, pretending that it was going to be an open process.

“Lazard brought in, to supposedly manage the sale, they weren’t even allowed to value the portfolio. They weren’t even allowed to control the data room. And when Pimco pulled out, Nama didn’t even tell Lazard the reason, why? And they didn’t even attend the meeting in late March between Cerberus and Nama, why? But they were paid €4.3million for a few months’ work? A lot of money just for a bit of back combing.

Hogan Lovells were brought in for legal advice. But Nama didn’t even ask them their advice, following Pimco’s admission of a fixer’s fee for the boys. Nama didn’t even ask their advice when they discovered that Cerberus had gone ahead and paid the €15million fixer’s fee anyway.

“Nama says they had a problem with Pimco, paying a fixer’s fee, so why didn’t they have a problem with Cerberus paying one? Just because the boys took Cushnahan’s name off the list? Seriously?

Why did Nama refuse our FOI requests regarding their correspondence with Hogan Lovells? Nama agreed to pay Hogan Lovells €290,000 – ended up paying them €1.1million, for what?

“That Frank Cushnahan, Ronnie Hanna and Dave Watters were a cabal, making it all happen in the background is now beyond question. Frank Daly told the PAC [public accounts committee] last September that our key decision was to set a minimum price of €1.3billion for this portfolio. But they didn’t, Pimco set the price. Dave Watters did the business plans, Cushnahan pulled the strings and Ronnie Hanna fixed the price in Dublin.

“The reason that Nama fell foul of the C&AG was because the task of retrofit in the price led to them breaking their own rules. Of course, when Frank Cushnahan became unbackable, Nama decided to throw him under the bus and distance themselves from him as much as possible.

“But why did it take Nama until April 2016 – two years later – to even report him to SIPO. Why didn’t they report him under section 19 of the Criminal Justices Act or did they at all?

“We then began to hear NAMA tell us about how insignificant the NIAC was, so Cushnahan didn’t really matter at all. But Minister for Finance [Michael Noonan], on the 18th June, 2012 said:

‘I would like to thank Frank Cushnahan and Brown Rowntree for agreeing to continue serving on NAMA’s NIAC. I see this committee as having a very important role in assisting NAMA meet its obligations on both sides of the Border.’

“Then NAMA told us that Cushnahan had no access to confidential information. So why did NAMA ask him to return it or destroy it, if there was no value in it?

Frank Daly was still trying to distance himself from Cushnahan when asked about joining the board of the religious charity Corani, of which Cushnahan was a long-standing member.

“Frank Daly said:

‘I think it was a pure coincidence. It’s a charity operated by Redemptorists.  He was on the board for quite some time.  I know some Redemptorists in Dublin and I was asked whether I would join the board.  It was not a month later.  As far as I know, it was probably the best part of a year later.’

The truth is, it  was a month later – not a year laterCushnahan joined the NIAC on the 13th May, 2010. Frank Daly joined Corani 32 days later on the 14th of June, 2010. Can we believe anything that he tells us? The Project Eagle sales process was a textbook disaster.”

Acting Ceann Comhairle asks Mr Wallace to withdraw calling Mr Daly a liar. Mr Wallace said: “I didn’t say he was, honestly, I didn’t. I asked can we believe what he says, I didn’t say he was a liar.” Mr Wallace then continues:

“The Project Eagle sales process was a textbook disaster: Short time span for possible bidders; limited information; a one-bid process; no local valuations allowed. This all suited PIMCO, and later Cerberus, who bought the same info from the boys. It was never a competitive process. PIMCO’s gig only, became Cerberus’s gig onlyAnd NAMA’s ridiculous decision to sell it in one lot, suited the fixers just fine.

“Did Ronnie Hanna declare any conflict he might have had with Northern Ireland connections from his Ulster Bank Northern Ireland days? Why did NAMA treat business people in the Republic of Ireland almost four times less favourably than those in Northern Ireland? Is it possible that Frank Cushnahan or Ronnie Hanna might have had anything to do with that?

“During his employment at NAMA, as Head of Asset Recovery, how many connections did Ronnie Hanna approve enforcement against? All of these need to be investigated to ascertain whether there was favouritism or motivation of any sort.

In the BBC northern Ireland Spotlight programme, Frank Cushnahan clearly states that he went to Ronnie to make sure that John Miskelly’s ‘lights wouldn’t be put out’. ‘Me and Ronnie are thick as thieves,’ Cushnahan said. The entire Miskelly file needs to be investigated. All northern Ireland debtor and Project Eagle files need to be looked at, to discern whether there was favouritism or influence.

“In October 2015, I asked Nama if Ronnie Hanna, along with Frank Cushnahan or Dave Watters ever met with any investment fund personnel? NAMA said: ‘No, Mr Hanna had no such meetings with these individuals.’ That is not true. I know for a fact he did. 

When I said in the Dáil in July 2015, that £7 million of Cerberus’s money had ended up in an Isle of Man bank account, Nama claimed that it was the first they heard of it.

“Cerberus said it was informed by Brown Rudnick in April 2015, about the Law Society of northern Ireland Investigation into Ian Coulter’s conduct regarding the fee Cerberus paid to Tughans, through Brown Rudnick. Is it credible that no one told Nama?

“Well, for the Government’s sake, let me tell you that I’ve met an individual who was asked to look into the same matter in January 2015. On behalf of who? On behalf of Nama.

“The British National Crime Agency knew that all was not well. So, they commenced an investigation. The Security and Exchange in the US knew that all was not well. They, too, started an investigation. They were exercised by the possibility that Cerberus personnel Jon Snow and Dan Quale may have abused their former office. And they were looking at any possible bribing or inducing anyone for gain.

“All the while, NAMA were in denial – ‘everything’s grand, we’re doing a great job’. The Government and Department of Finance, and the Minister for Finance were the cheerleaders.

Recently, Transparency Ireland stated that Irish people’s perception of corruption rose in 2016, owing to the controversies surrounding NAMA – but it doesn’t stop there. We have received very worrying information through Namaleaks regarding the behaviour of some real estate auctioneer firms, where individuals were looking for cash to be placed into an offshore account before agreeing to sell properties, belonging to Nama and other financial institutions.  Some of these individuals are well known and have reached positions of high authority in this country.

I’ve met a developer who told me that he paid large amounts of cash to an individual, a former employee of Nama, who held a very serious position in Nama, a very serious one. A lot of money has changed hands.

Back in 2015, I mentioned the payment of €15,000 in a bag, by an individual, to a NAMA employee, to garner favour. Not sure where the Gardai are with their investigation into this, but I can tell you I’m more certain that ever, about what happened – they go their MOU, out the gap and away, and doing very well for themselves now.

These ‘new kids on the block’, their newfound fortunes are built on the proceeds of crime. One of them is working in the higher echelons of Cerberus, who have been responsible for taking control of small businesses, family farms, and forcing people out of their homes and onto the housing list.

“We must be one of the best little countries in the world, to do business in. What in god’s name is wrong with us that we don’t like the truth? What in god’s name is wrong with us that we don’t want to hold State bodies to account? What’s wrong with us that we don’t want the truth about Nama?

Is it because it’s too distasteful? Because you won’t like it? Because you’ve stood over what’s happened for the last five or six years? Is that why you don’t want the truth to come out about it?

“Nama is rotten to the core. And you know what? I actually believe that the minister [for finance, Michael Noonan] knows it. I don’t believe for a second that he thinks they’re clean. There’s problems right through the workings of Nama. The dogs on the street know it. Are you going to pretend forever that they’ve done a great job? And lied to the people?

“The people are tired of being lied to. That’s why politics is changing. That’s why the Americans elected an eejit called Trump, cause they were tired of being lied to but he likes of Obama and Clinton and Bush before him. Well, you know what? They’re going to get tired of you lot lying to them as well.

“Fianna Fáil and Fine Gael have engaged in deception, in dealing with the people of Ireland and they’re tired of it. You are not going to get away with it forever. The social media has changed things. People are waking up to what you are up to and to how disingenuous you are about how this country is run and how we organise society. This is such a frustrating place, it makes my blood boil.”

Meanwhile…

In addition…

Previously: ‘I Will Not Direct Nama To Halt Or Change Its Sale Strategies’

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28 thoughts on “‘Nama Sold A Site Worth €120m For €42.5m’

  1. Louis Lefronde

    There comes a time when you need Independent Magistrates with the power to go into the likes of Nama, investigate them and bring prosecutions without having to go near the Gardai, the DPP’s office which frankly haven’t the competence nor the expertise to root out this kind of nonsense

  2. b

    “if the comparable prices, per acre, are in the region of €20million – then it means we have sold a site, Nama sold a site worth €120million for €42.5million. That’s shocking. Absolutely shocking.”

    If……

    who am I to doubt RBB’s property valuation expertise

    1. Devine

      Well, I’m more likely to believe him than some Rugger-Bugger who pulled a figure out of his bum.

  3. Cian

    What exactly was sold for €42 million? The land? or the outstanding debt?

    Are CIE still entitled to 17% of the sale price or 17% rent? if that is the case then this would have a serious negative impact on the land price.

    If the total development is going to be €600 million, then their 17% of that is €102 million. Add the sale price of 42 million and you get a cost of €144 million for the developer for land ‘only’ worth €120million.

    1. Andy

      I really don’t understand any of this from his comments.

      Did Treasury actually buy the site from CIE? If so why does he say CIE owned it (is that present or past tense)
      If they only paid 42mm how did the site have hundreds or millions of loans on it?
      Was the 17% a profit share or a revenues/gross rent share?

      It seems Richard hasn’t a clue what he’s talking about but is very excited about it.

  4. SB

    Jaysus, I’m beginning to think I’d elect a Trump if he’d promise to stop all of this sort of brown bag mullarkey

    1. scottser

      you should see the size of trump’s brown bag. out of all the brown bag artists he is the daddy. the other brown bagistas call him ‘the bag-meister’. giving trump authorita is like giving the fat kid the key to the sweet shop.

    2. Devine

      Seriously…. Read Trump’s by biography by David Clay Johnson (Pulitzer prize winning journalist) and you would realise that Trump is the mother of all crooked property developers. In fact he’d be quite at home with the criminals we have here who pose as ‘Developers’

    3. SB

      I think the point is that all you’d need is someone to *promise* the electorate to root all this out and they’d get a lot of votes. It’s stuff like this that opens the door to the Alt-right or whatever you want to call them, even if they’re as brown-baggy as the rest

  5. Kolmo

    Well done to BS for keeping this theft (yet another..) of our taxes and assets highlighted, and fair play to Wallace TD for getting to grips with the complex shenanigans of the well-spoken fat-fingered greasy class.

      1. Anomanomanom

        He was, but from what I read about him he genuinely did spend his own money helping out people. Now of course he wanted to make money but hes not in the same league as those scum bags that would have stepped on their own kids just for an extra euro more than the guy buying the building down the road.

        1. Happy Molloy

          I believe that’s pretty true to be fair to the man. Though he was rogueish enough in his tax affairs.

  6. Truth in the News

    The stench from the rot of Nama festers on.
    Nice to see it exposed in all places Leinster House.

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