KPMG among tender winners

NAMA CONTRACTS:A CENTRAL strand of Nama's operations is the outsourcing of various professional services to third-party firms.

According to Nama's business plan, the agency will pay €2.64 billion in fees and expenses over its projected 10-year lifespan.

Since the publication of the first tender document on May 12th, the Republic's main accountancy, tax, legal firms and surveyors have been tendering for various contracts which have been advertised through the Government's procurement website.

KPMG is the latest firm to be awarded a contract. It staved off competition from eight other applicants to win the overall auditing contract. As audit co-ordinator, the accountancy firm will be co- ordinating five other firms who have been employed as valuers for the loans going to Nama. The five firms are: Alvarez and Marsal, Ernst and Young, FTI Consulting Ltd, PricewaterhouseCoopers and UHY Hacker Young LLP.

KPMG will be responsible for compiling the information contained in the acquisition schedules being sent to banks and performing consistency checks to ensure that the same criteria is being applied to each loan by each valuer.

In a separate capacity to its appointment as valuer, PwC has been appointed as tax adviser to the agency. Among its main duties will be the provision of advice on tax issues arising from its work on overseas property assets held by the banks.

Dublin law firm Arthur Cox was one of the first contractors to be named when it was appointed as legal adviser to Nama. Seventeen Irish and international firms tendered for the contract.

In addition, more than 60 solicitor firms have been appointed to a panel of legal advisers, although Limerick firm Dermot G O'Donovan Partners withdrew from the panel last month over the involvement of a number of its partners in a failed property company.

Appointment to the panel does not necessarily guarantee that all firms will be engaged by Nama.

Among the best-known law firms on the panel are: Matheson Ormsby Prentice; William Fry; Ivor Fitzpatrick Co; BCM Hanley Wallace; Beauchamps; Eugene F Collins; Eversheds O'Donnell Sweeney; Gore Grimes; Hayes Solicitors; Lavelle Coleman; Lennon Heather Solicitors; LK Shields; Maples Calder and Mason Hayes Curran.

HSBC Investment Bank is one of a handful of non-Irish institutions to be awarded a contract by Nama. The London-based investment bank is providing banking and financial advice to the agency.

More than 35 estate agents and property companies have been appointed to provide property valuation services to Nama.

The tender process was divided into five geographical categories. Five valuers were appointed to each region - Leinster, Munster, Connacht, Ulster and a national division.

Lisney, Savills, DTZ Sherry Fitzgerald, Jones Lang Lasalle, CB Richard Ellis were appointed to run the national operations. An additional five valuers will assess assets in the UK and a further five will provide valuation services for properties in the US.

Meanwhile, Societé Generale Securities Services (SGSS) has been awarded the contract for providing derivatives advice and valuation services to Nama, while Citibank will be the contractor responsible for transferring the bonds with which Nama is purchasing the loans to the banks.

It is understood British PLC Capita Group will be appointed to administer and service the Nama loans that will be administered by the banks themselves, ie the smaller loans that will not be linked to the first 100 borrowers to be administered directly by Nama.