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News Release

Dublin

Jones Lang LaSalle welcomes Budget measures for property market

Jones Lang LaSalle welcomed the Budget announcement of the creation of the National Asset Management Agency (NAMA).


Jones Lang LaSalle welcomed  the Budget announcement of the creation of the National Asset Management Agency (NAMA).  “This measure makes sound commercial sense for both Government and banks” said John Mulcahy, Chairman of Jones Lang LaSalle, “History has shown that the orderly work out of troubled assets produces the best outcome, while freeing up the banks to return to their main business of lending in the economy”.

 


The NAMA will be a Semi State body under the governance and direction of the NTMA.  While not a bank the NAMA will be an asset management company dealing with assets (good and bad) transferred from banks.  The size of the NAMA is predicted to be in the region of €80bn to €90bn in assets; this is based on current book value but the assets will be transferred to the NAMA based on appropriate discounts depending on the assessment of risks involved.

 


Other Budget measures were broadly welcomed by John Moran, Managing Director: "This Budget is a first meaningful step to help create certainty and some future visibility on the economy.  Without a clear national or personal financial plan, everyone has been floundering.  Elements of the property investment equation are already repaired, others will take a little more time, but a return to lending is vital to recovery and today’s Budget measures bring us a step closer to that”.

 


The increase in Capital Gains Tax is less welcome but is unlikely to be a major deterrent at present.  Stamp duty measures to encourage house purchase activity of both new and second hand homes should be positive although they may take some time to filter into actual benefits for the residential and land market.

 

 

For further information please contact:

 


John Moran, Managing Director, Jones Lang LaSalle

john.moran@eu.jll.com  01-6731 637

 


John Mulcahy, Chairman, Jones Lang LaSalle

john.mulcahy@eu.jll.com 01-6731 620