The National Asset Management Agency (NAMA) proposes to invest €2 billion in Ireland to complete construction work in progress and develop greenfield sites, in anticipation of future supply shortages in some market segments, the Agency’s Chairman said today.

Speaking in Galway, Frank Daly said this investment could generate up to 25,000 direct and indirect construction jobs and up to 10,000 additional jobs in the wider economy, based on government and industry studies.

"Subject to suitable opportunities arising, we plan to invest at least €2 billion in Ireland in development capital in order to preserve, enhance and complete commercial and residential projects in Ireland over the period to 2016," said Mr Daly.

"This includes the completion of properties which are currently under development but, more importantly, it means the development of land in anticipation of future supply shortages and demand."

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Mr Daly also said the Agency's loan portfolio has more potential than was originally expected, with 90% of property assets in Ireland located in the greater Dublin area, Cork, Limerick and Galway.

"Our view is that long-term prospects for much of this property are good. On that basis, we propose to invest, particularly over the next three years, with a view to ensuring that this property is available to meet commercial and residential demand over the rest of the decade," he said.

He added that the Agency had already committed more than €500 million in new working capital and development capital advances for projects located in Ireland, and highlighted a number of these including office, retail and residential projects in various locations.

"These are just some examples of active participation and funding activities by NAMA – we expect plenty of others in the near future," said Mr Daly.

"Our support is not confined to advances of capital. We have also facilitated the letting of office space by a number of major companies; for instance, we approved funding for fit-out costs to facilitate sizeable lettings to a number of prominent tenants recently. We also provide financial support for planning applications and other essential infrastructure activity in various locations."

Mr Daly said NAMA will not achieve its objectives by relying solely on the disposal of property.

(CD/GK)