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Property Valuation Fees raise serious concerns over conflicts of interest at the heart of NAMA

14 March, 2012 - by Gerry Adams TD


Sinn Féin President Gerry Adams has expressed “serious concerns over the fees being paid by NAMA for property valuations to firms with close links to NAMA management”.

Teachta Adams was speaking following the receipt of a ministerial response to a PQ from him which shows that NAMA has spent €13.3 million on property valuations since its establishment.

The figures show that Jones Lang Lasalle Ltd was the top recipient of fees for property valuations having received €1.239 million in fees since NAMA’s establishment.

Teachta Adams said:

“The fact that firms with close links to NAMA management are the top recipient of these fees highlights again the need for closer scrutiny of the work of NAMA.

“Before the last election Fine Gael promised to expose NAMA to greater public scrutiny but so far the progress made on this has been negligible.

“I am concerned that NAMA is not properly managing conflicts of interest.

“Sinn Fein has been consistently calling for a light to be shone on the work of NAMA and these latest revelations highlight once again the need for more scrutiny.

“When I have raised this issue with the Taoiseach his response was totally unsatisfactory. The government needs to take action.” concluded Teachta Adams.

Note to editor:

John Mulcahy is the current Head of Asset Management at NAMA. Mr Mulcahy worked at Jones Lang LaSalle since 1970 and was its Chairman until his secondment to NAMA as Head of Portfolio Management. Last week he was appointed by the Minister for Finance to the Board of NAMA as an executive director.

DÁIL QUESTION

NO 141

To ask the Minister for Finance further to Parliamentary Question No. 94 of 22 February 2012, the fees that are paid to companies who provide property valuations for the National Assets Management Agency; the fees for this service that were paid in each of the years since NAMA was established; and who were the top ten recipients of these fees in each of the years since NAMA was established..

- Gerry Adams.
* For WRITTEN answer on Tuesday, 13th March, 2012.
Ref No: 13616/12

REPLY

Minister for Finance ( Mr Noonan) : NAMA has provided the property valuation fees below by year, together with the top 10 recipients of these fees in each year. The analysis is based on fees invoiced to and paid by NAMA in the period from inception to 31 January 2012. Amounts are inclusive of VAT.

A total of €13.3m has been paid by NAMA for property valuations. €12.4m of the valuation fees paid relate to once-off property valuations carried out as part of the property due diligence in respect of the acquired loans. €0.9m of the valuation fees paid relate to valuations required as part of NAMA’s ongoing management of the acquired portfolio

The property valuation fees incurred in respect of property due diligence are recovered from the financial institutions through a reduction in the acquisition value.

Total Property Valuation Expenses by years (€‘000)
Year Total €’000
2010 4,084
2011 8,947
2012 273
Total 13,304

Firm 2012 2011 2012 Total €’000
Jones Lang Lasalle Ltd - Dublin 584 655 - 1,239
Donal O’Buachalla & Co Ltd 329 873 - 1,201
Colliers International Dublin 444 534 - 978
Lisney Ltd 293 567 1 861
Knight Frank LLP 266 490 - 756
WK Nowlan & Associates 327 406 16 748
Cushman and Wakefield 56 576 65 697
Lambert Smith Hampton 111 578 - 689
HWBC Ltd 210 418 3 630
Savills Commercial (Ireland) Ltd 52 456 105 612


Top 10 Providers to date (€’000)

Top 10 Providers by year (€’000)
2010
Firm €’000
Jones Lang Lasalle Ltd – Dublin 584
Colliers International Dublin 444
Donal O’Buachalla & Co Ltd 329
WK Nowlan & Associates 327
Lisney Ltd 293
CB Richard Ellis 278
Knight Frank LLP 266
Bannon Commercial Property Consultants Ltd 229
HWBC Ltd 210
GVA Grimley Ltd 142


2011
Firm (€’000)
Donal O’Buachalla & Co Ltd 873
Jones Lang Lasalle Ltd- Dublin 655
Lambert Smith Hampton 578
Cushman and Wakefield 576
Lisney Ltd 567
Colliers International Dublin 534
Knight Frank LLP 490
Savills Commercial (Ireland) Ltd 456
HWBC Ltd 418
Irish & European 417


2012
Firm (€’000)
Savills Commercial (Ireland) Ltd 105
Cushman and Wakefield 65
CB Richard Ellis 42
Frazer Kidd & Partners 22
WK Nowlan & Associates 16
Irish & European 7
Douglas Newman Good 6
Knight Frank (Dublin) 3
HWBC Ltd 3
Colliers International Belfast 2

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