Many currently unfinished
commercial development projects did not make financial sense, even at the property market's peak, it has been claimed.
Many commercial property development sites in Ireland do not make financial sense, according to the National Asset Management Agency (Nama).
The toxic-asset loans agency has announced that it will probably have to demolish a number of half-finished developments around Dublin.
Nama will not be providing loans to finish the developments "just for the sake of it", which leaves no choice but to knock them down, according to Brendan McDonagh, chief executive of the agency.
"We can all see land and half-built developments which should never have been contemplated as it is hard for anyone with an objective view to see how they made sense even at the top of an over-heated market," he said.
Nama has also established that some Irish banks were provided with 100 per cent loans to buy agricultural land purely for speculative purposes.
Last week, Irish Nationwide announced that losses in the commercial property market had led to the building society losing €2.5 billion (£2.18 million) in the last year.
Posted by Tess Nelson
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