An Roinn Airgeadais Department of Finance Request Ref. FQI/143/2015 /8 June 2015 Mr Gavin Sheridan gavinsblog@gmail.com Dear Mr Sheridan, I refer to the request which you have made under the Freedom of Information Acts 2014 for records held by this Department. Following your consultation with the FOI Unit in the Department of Finance, I received a request for, Agendas, briefing papers fo r attendees, minutes, notes and any other documents related to thefollowing Minister’s meetings: NAMA Advisory Group meeting March 13 2012, Frank Daly, NAMA, April 4, 2012 As outlined in the attached schedule, I have decided to grant your request in part. Reasons for decision The relevant FOI exemptions which apply to the records identified are set out in detail in the schedule attached to this letter. Some information has been excluded as being not relevant to the request. In relation to where a record is indicated as being exempted under Section 30, the record concerned contains information given in confidence and on the understanding that it would be treated by it as confidential. The release of such information is exempted under Section 30(1) of the FOI Act 2014. In relation to where a record is indicated as being exempted under Section 35, the record concerned contains information given in confidence and on the understanding that it would be treated by it as confidential. The release of such information is exempted under Section 35(1) of the FOI Act 2014. In relation to where a record is indicated as being exempted under Section 36, the records concerned contain information which is commercially sensitive. The release of such information is exempted under Section 36(1) of the FOI Act 2014. In relation to where a record is indicated as being exempted under Section 37, the records concerned contain personal information. The release of such information is exempted under Section 37(1) of the FOI Act 2014. In relation to where a record is indicated as being exempted under Section 40, the records concerned contain personal information. The release of such information is exempted under Section 40(1) of the FOI Act 2014. Tithe an Rialtais Sraid Mhuirfean Uacht Baile Atha Cliath 2 Eire Fon / Tel: 353 1 676 7571 Facs / Fax: 353 1 678 9936 Glao Aitiuil / LoCall:1890 66 10 10 http://www.finance.gov.ie Government Buildings Upper Merrion Street Dublin 2 Ireland A schedule is attached to this letter. It shows all the records located in the Departm ent that are considered to be relevant to your request. The schedule describes each docum ent/record, and indicates whether the record is released in full, released in part or not released. Access Arrangements The records are supplied in digital format. Rights of appeal You may appeal this decision by writing to the Freedom of Information Unit, Department of Finance, 2 - 4 Merrion Row, Dublin 2 seeking internal review of the matter. Please note that a fee applies for such an appeal. The level of this has been set at €30. Payment should be made by way of bank draft, money order, postal order or personal cheque, and made payable to the Department of Finance. Please refer to this decision in your letter. You should make your appeal within 4 weeks from the date of this notification; however, the making of a late appeal may be permitted in appropriate circumstances. A week is defined in the Act to mean 5 consecutive weekdays, excluding Saturdays and public holidays (Sundays are also excluded, as they are not weekdays). The appeal will involve a complete reconsideration of the matter by a more senior member of the staff of this Department and the decision will be communicated to you within 3 weeks. Yours sincerely, Declan Reid Dept, of Finance Financial Services Division FOI Request Reference: 143/2015 Schedule of Records: Summary of Decision Making Record No. Brief Description & Date of record 1 2 File Ref. No. of Pages Decision: Grant/Part Grant/Refuse Schedule of Minister / NAMA Advisory Board Meetings Correspondence between Michael Geoghan and Private Secretary 05/03/2012 1 2 Grant Part Grant Section 37 Record contains personal information The public interest test was applied. However Personal Information the balance lies in not releasing the record. redacted 3 Correspondence between Advisory Group Members and Private Secretary 08/03/2012 2 Part Grant Section 37 Record contains personal information The public interest test was applied. However Personal Information the balance lies in not releasing the record. redacted 4 Correspondence between Advisory Group Members and Private Secretary 08/03/2012 2 Part Grant Section 37 Record contains personal information The public interest test was applied. However Personal Information the balance lies in not releasing the record. redacted 5 6 7 8 DoF Internal email DoF Internal email DoF Internal email DoF Internal email 1 1 1 17 Grant Grant Grant Part Grant Section Section Section Section 30 35 36 40 S30 - The record contains information which The public interest test was applied. However Commercially could effect the functions and negotiations of an the balance lies in not releasing the record. sensitive/confidential FOI body. information redacted. 535 - The record contains information received by the Department of Finance in confidence and on the understanding that it would be treated as confidential 536 - The record contains commercially sensitive information. S40 - The record contains information which could adveresly effect the financial and economic interests of the State. 9 10 DoF Internal email 15/03/2012 Letter from NAMA Board Chairman to Minister 16/03/2012 1 4 Grant Grant 11 Email from Private Secretary to DoF Staff Members (2 attachments) 20/03/2012 19 Part Grant Section Section Section Section 30 35 36 40 S30 - The record contains information which The public interest test was applied. However Commercially could effect the functions and negotiations of an the balance lies in not releasing the record. sensitive/confidential FOI body. information redacted. 535 - The record contains information received by the Department of Finance in confidence and on the understanding that it would be treated as confidential 536 - The record contains commercially sensitive information. S40 - The record contains information which could adveresly effect the financial and economic interests of the State. 12 Email Exchange NAMA Chair and Minister's Private Sec. 1 Part Grant Section 37 13 DoF Internal email 2 Grant 14 DoF Internal email 1 Grant Basis of Refusal - Section Reason for Decision of Act Public Interest Considerations [if applicable) Identify deletions where record is part Refused (for and against release) 13/03/2012 13/03/2012 14/03/2012 15/03/2012 (lattachment) Personal information The public interest test was applied. However Personal Information the balance lies in not releasing the record. redacted Previous email chain and subject are not relevant to the request and have been removed Signed Date (Deciding Officer) /& /c jjZ L FOI PROCESSING FORM FOI Request Reference: 143-2015 Processing time ( ALL time spent on request including time spent on search and retrieval and decision making) Grade Brief description of work undertaken Principal No of staff involved No of hours Reviewing schedule and documents - Decision Making 1 1 Search and retrieval of the relevant documentation Collating and Scheduling the relevant documentation 1 5 2 6 Assistant Principal Administrative Officer Executive Officer Staff Officer Clerical Officer Total Signed / / (Deciding Officer) FOI Request Reference: 143-2015 Search and Retrieval Checklist Steps taken to Search and Retrieve Records Searched for relevant documents in electronic files and email. No. & Grade of Staff Involved Cost (@€20.00 per hour) No. of Hours 1AO 3 60.00 Requested documentation from relevant officers within the Department. Collating and scheduling relevant documentation. 1AO 2 40.00 Total FOI File Return Checklist €100.00 Tick box to confirm 1. All relevant records* have been recorded on the official schedule 2. All the relevant records are numbered 3. Clear copies of all relevant records are attached to the file Of Kinsella, Sean From: Sent: To: Kinsella, Sean 15 March 2012 16:52 Byrne, David Im not the secretary! That was just a meeting with the minister .... They will work on their own? "Byrne, David" wrote: did you lot set a date for the next NAMA Advisory Group meeting no worries if you didn't - just interested for a PQ David Byrne Financial Services Division Department of Finance Ph: (01)6045531 1 16th March 2012 Mr. Michael Noonan T.D., Minister for Finance, Department of Finance, Upper Merrion Street, Dublin 2. Dear Minister, As mentioned during our meeting earlier this week I enclose a listing of several properties over which NAMA holds security in respect of debtors' loans. These may be of interest to Government in its consideration of the location and development of a national paediatric hospital (NPH). Mindful of the establishment of the Independent Review Group (IRG), following the rejection of the planning application at the Mater Misericordiae Hospital, we would be happy to offer further assistance if needed, including refinement of the listing, on foot of any findings by the IRG. This is not an exhaustive list of the lands in NAMA as there are other lands both North and West of the city but we believe these sites may potentially be the most suitable. 1. South Circular Road Sites, Dublin 8 Location and access: Approximately 8 Hectare (20.5 acre) inner city site comprising two existing sites adjoining the NAMA site, the Coombe Women & Infants University Hospital, a DCC site plus two adjoining sites within the NAMA portfolio (note: the NAMA sites comprise some 10.7 acres, separated by the Dublin City Council landholding of 4.6 acres. The area usable for a children's hospital would therefore be 15.3 acres). The location is within 400m of St. James Hospital (via Reuben Street and with the creation of a new entrance to St. James) and the Luas red line which connects to Heuston Station. Public transport access is good with Dublin Bus and Luas red line services in proximity to the site, with links to commuter/mainline rail at Heuston Station. There are several existing buildings on site. Planning: The site is zoned for the social, economic and physical development and/or rejuvenation of the area with mixed use of which residential and Z6 employment uses would be the predominant uses. Hospital use is permissible under this zoning. Permission exists for a sizeable scale mixed use development on the two NAMA sites but has not been developed. Indicative plot ratio range for regeneration areas is 1:1 to 3:1. An above ground building floorspace of approximately 108,000 sq.m. could be accommodated here at a plot ratio of less than 2:1 (NAMA and DCC lands). 2. North Docks Sites, Dublin 1 Location and access: A combination of sites located in the docklands close to the 02 venue, clustered around Mayor Street upper. Combined land area of approximately 6 hectares (15 acres). The location is served by Luas red line and is proximate to Dublin Bus services and commuter/mainline rail at Connolly Station. There are several existing buildings on site. No proximity to adult/maternity hospital. Planning: The district is zoned for the social, economic and physical development and/or rejuvenation of the area with mixed use of which residential and Z6 employment uses would be the predominant uses. Hospital use is permissible under this zoning. The lands in question form part of a Strategic Development & Regeneration Area, as designated in the Dublin City Development Plan 2011-2017 and fall within the area of the Dublin Docklands Masterplan. Indicative plot ratio range for regeneration areas is 1:1 to 3:1. At 3:1, an above ground building floorspace of approx. 108,000 sq.m. would require a site of c 3.65 hectares. 3. Elm Park, Merrion Road Site, Dublin 4 Location and access: Close to Booterstown Dart station. Served by Dublin Bus along Merrion Road bus corridor. Development has been completed on this site which includes a purpose built constructed hospital grey box, hotel use, offices and apartments. The vacant commercial elements of the development are approximately 30,000 sq.m., the overall commercial build is approximately 50,000 sq.m. The site is proximate to the campus of St. Vincent's Hospital. Planning: The site is zoned for the creation and protection of enterprise and to facilitate opportunities for employment creation. Hospital use is considered on its merits, case by case, under this zoning. Indicative plot ratio range for regeneration areas is 2:1 to 3:1. 4. Swords Road Site, Dublin 9 Location and access: Approximately 2.7 hectares (6.75 acre) site bounded to the west by Swords Road, to the south by Highfield Hospital, to the north by Dublin City Council lands and Collins Avenue, to the east by existing residential development 'High Park'. Swords Road is a designated Q.BC, but the site is not within close proximity of rail based transport service (existing or proposed). Reasonable proximity to Beaumont Hospital. Planning: Land is zoned Z12, 'to ensure that existing environmental amenities are protected in any future use of these lands'. Hospitals are permissible under this zoning. The indicative Plot Ratio range is 0.5:1 to 2.5:1. Permission has been granted for a residential scheme on these lands. No development has taken place on site to date. 5. Newlands Cross Site, Dublin 24 Location and access: 13 hectare (28 acre) site with frontage onto the Naas Road, with a current 'left in left out' only access point. A mostly greenfield site with the exception of two protected structures. Proximate to the Luas via the Red Cow inter change and good access to national road network dependent on junction and access upgrades. No proximity to adult/maternity hospital. Planning: Land is zoned green belt. Hospital use is open for consideration. The land falls within the Naas Road Development Framework as prepared by South Dublin County Council, which continues to apply the greenbelt zoning on these lands 6. Poolbeg Site, Dublin 4 Location and access Lands of approximately 16 hectare (37 acre) at Poolbeg, adjoining Southbank Road. No proximity to rail based transport services and limited bus service at present. No proximity to adult/maternity hospital. Planning: The site is zoned for the social, economic and physical development and/or rejuvenation of the area with mixed use of which residential and 26 employment uses would be the predominant uses. Hospital use is permissible under this zoning. In 2007 permission for development was refused on 12 acres (easternmost portion of the lands) due to deficiencies in the capacity of the road network and public transport. A Draft Masterplan for this area was prepared by the Dublin Docklands Development Authority but not adopted. 7. Lucan Site, County Dublin Location and access: Greenfield 36 hectare (90 acre) site at Saint Edmundsbury, Lucan, The lands are located proximate to the N4 road corridor and which includes the Lucan QBC. There is no proximity to rail based public transport. No proximity to adult/maternity hospital. Planning: Planning: Lands are zoned 'Objective 1 - to protect and enhance the outstanding character and amenity of the Liffey Valle/. Hospital use is established on the lands, having formed part of St Patrick's University Hospital. The Hermitage Medical Clinic was granted planning to the east of the subject lands and is operational. I stress that NAMA is not expressing a view on a preferred location for the Hospital. Our purpose is simply to proffer what we think is useful and pertinent information for consideration. Brendan McDonagh, John Mulcahy and I are available to meet with you or the IRG to discuss these sites and provide any other assistance. Yours sincerely, pp. f , Frank Daly Chairman ^ M eeting with NAMA Advisory Group Date: 13 March 2012 In Attendance: Minister for Finance, Sean Kinsella, Ann Nolan [For Part] Michael Geoghegan, Denis Rooney, Frank Daly Introduction MG made some introductory comments - he noted it was his first time back in NAMA since he submitted his report to the Board. He noted that most o f the issues identified in his report were being worked on and progressed. He mentioned the positive effect o f the restructuring at Board and senior management level and went on to note that the focus of the Advisory Group (AG) was on strategic issues - not to be seen as in any way ‘managing N A M A ’. The AG was at an early stage, and they were still compiling data etc. Strategy Document The AG presented a draft document setting out key NAM A strategic challenges (doc attached). Key points: o NAM A can meet repayment schedule to end 2013 but becomes much more challenging after that (the repayment schedule peaks in 2014-16). The main driver of the projected falloff in disposals is N AM A ’s Irish L&D book - doesn’t appear that NAM A will be able to move much if any o f this. o Latest NAM A forecasts suggest that in an adverse scenario N A M A ’s end position will be €-1.6 billion. This would mean burning sub-debt in participating institutions. o The AG will explore the feasibility o f the sale o f N AM A ’s UK book in its entirety (retaining some upside for the State). The AG currently see this as a good option given pnces levels and the fact that NAM A could pay down a large portion o f its debt and focus its attention on the Irish book. There are risks (publicity, achieving a satisfactor> price, execution etc). o Northern Irish property market is not in good shape and the prospects for disposing assets at good prices over the short to medium term are not good. o Rest o f world book should be much easier to move. o The AG mentioned two specific proposals they will explore to improve N A M A ’s ability to sell assets - (1) develop a land strategy that would, for example, allow the State to control the supply o f land (2) create additional investment vehicles to improve the saleability o f N AM A ’s assets e.g. REITs etc o The AG was quite positive on the level o f working capital provided by NAM A to debtors - indicated that NAMA were willing to engage and invest where warranted. The Group were keen to limit N AM A ’s strategy document and forecasts to end 2013. After this, too much certainty would surround any projections and could lead to the o o o o generation of milestones which may be difficult if not impossible to achieve. (It was noted that the NAMA business plan previously published has detailed projections for the life o f NAMA.) The Group will also look at ‘exit strategies’ e.g. what to do with an eventual land bank, whether NAMA should be extended etc. The AG noted their concerns regarding the number o f loans managed by the Pis but noted that NAMA had set up a dedicated team to increase their oversight of this process. Finally, the data in relation to debtors, business plans approved, receivers appointed etc. highlights that NAMA is working with most debtors and the level o f enforcements has been relatively low. Other Key Issues 1. Section 172 o o J ’\ Va v ^ This puts NAMA at a disadvantage in the market but more a future problem than a current problem. Minister noted difficulties with this but indicated willingness to examine the merits o f any proposals in this area. 2. Remuneration o o o o Group will look at this. Kfoted a number o f unique features o f NAMA - limited life organisation, as the financial industry recovers staff are likely to move on etc Turnover not a problem currently but concerns that in the coming years (particularly in the challenging 2014-16 period) this may change, They will examine scope for a long term incentive scheme linked to performance and loyalty etc with a potential claw-back, Minister expressed concerns but would wait for Group’s advice 3. Board o Group would be looking at suitable additions - AG preference for someone with a more entrepreneurial background Kinsella, Sean From: Sent: To: Cc: Subject: Attachments: Kinsella, Sean 20 March 2012 10:56 Leahy, Pat; Byrne, David Carrigan, Aidan NAMA Advisory Group Meeting with Minister Noonan 3.13.12 NAMA Advisory Group.doc; NAMA Plan.pdf Importance: Sensitivity: High Confidential COMMERCIALLY SENSITIVE Pat / David See attached draft report of above meeting and draft doc provided by the Group. Any questions, or if you need further clarity, let me know. l National Asset Management Agency Draft Strategic Plan key issues 13 March 2012 Portfolio by region and National Asset by asset type Management Agency Assets in Ireland €17.92bn acquisition value €17.44bn after 2010/2011 disposals €15.83bn by end-2013 {pre-impairment provision of€2.5bri) w Investment Residential ■ LAV ■End-2011 Hotels End-2012 Land ■ End-2013 Development Assets in Britain €10.8bn acquisition value €7.8bn after 2010/2011 disposals €5.6bn at end-2013 Investment Residential ■ LAV National Asset Management Agency Hotels ■ End-2011 End-2012 Land ■ End-2013 Assets in Northern Ireland €l,259m acquisition value Cl,232m after 2010/2011 disposals €l,160m by end-2013 _ '> National Asset .. Managemen*AsenC* Assets outside of Ireland and UK €1.84bn acquisition value €l.S8bn after 2010/2011 disposals €0.24bn at end-2013 National Asset Mana8enlen* 1.00 0.90 0 80 0.70 0.60 0.50 o o 0.40 0.30 0.20 0.10 0.00 Investment Residential l LAV ■End-2011 Hotels Land End-2012 ■ End-2013 Development Summary of sectoral/ regional strategies IRELAND - €17.9bn (€15.8bn by end-2013 - pre-impairment provision of€2.5bn) Enhance asset value and extract income from all assets to the greatest extent possible: Aim to increase occupancy and maximise rental income from investment assets. • Develop substantial proportion of Dublin land to produce cashflow in 2016-2019. Dispose of assets on a phased basis in line with the market's absorption capacity: €1 billion of assets (loans or property) to be offered for sale in each year from 2012 to 2015. Phased disposal of residual Irish assets between 2016 and 2020. Initiatives planned or underway: • Generate activity in Irish commercial property market through staple debt finance. Deferred consideration initiative for Irish residential property (750 units) Advisory Group considers that strategy in relation to €4.2 bn ROI land portfolio requires further consideration. regional strategies (contd.) BRITAIN - €10.8bn (€5.6bn bv end-2013) • Sell lower yielding assets in order to achieve 2013 target. • Otherwise retain income-generating assets in so far as possible post-2013. • Some development of London sites funded by NAMA will aid cashflow generation. Board to review monetisation options for British portfolio. NORTHERN IRELAND - €1.3bn (€1.2bn bv end-2013) Phased disposal between 2014 and 2020 (limited absorption capacity). REST OF WORLD (NON-IRE/NON-UK) - €1.8bn (€0.24bn bv end-2013) Full disposal by 2015 (or earlier, if possible). GENERAL Active loan sales strategy - advisors appointed in USA/Europe. Focus on attracting international investor capital through the creation of monetisation vehicles such as QIF and, potentially, REITs (legislation required in Ireland). Marketing: NAMA is to engage in an active international marketing drive (including roadshows and presentations) in order to stimulate investor interest in its assets. capital advances NPV analysis assumes €3.7 bn in total advances over NAMA life: - €0.7bn to date 2012: €0.5bn 2013 €0.6bn 2014 and 2015: €0.8bn each 2016-19: €0.3bn in total. Assumed that ultimate allocation will be about 60% ROI, 5% Nl and 35% Britain. Assumed that allocation will be €2.4 bn to Land & Development assets and €1.3bn to Investment/Residential assets. Senior Debt Redemption - Target €7.5bn m National Asset Management Agency Profile and forecast as at January 2012 Troika Meeting Description Opening Cash Balance 1 January Asset Sales (net receipts) Interest & Other Income New Lending Funding & Op Costs Cash Available for Redemptions* 2010 0.0 0.7 0.4 (0.2) (0.1) 0.8 2011 0.8 4.4 0.7 (0.3) (0.5) 5.1 2012 (f) 3.8 2.1 0.6 (0.5) (0.6) 5.4 2013 (f) 2.4 2.1 0.6 (0.6) (0.6) 3.9 Total 0.0 9.3 2.3 (1.6) (1.8) 8.2 Bond Redemptions 0.0 (1.25) (3.0) (3.25) (7.5) NAMACash Balances 31 December 0.8 3.8 2.4 0.7 0.7 * Note - Cash available for Redemptions may be impacted by collateral CSA posting requirements. Location Ireland UK & Nl USA Other Total Amount C'bn) 1.5 6.3 0.5 1.0 9.3 % 16% 68% 5% 11% 100% Cash Analysis March 2010 to 9th March 2012 r? _■? •> .•> >N •> *> v*> & J> >> s ' S> ■> O