THE National Asset Management Agency (Nama) will force property developers to sell assets in the near future to generate cash to prop up their businesses.

Nama wrote to the 10 largest developers last week ordering them to submit three-year business plans in the next few weeks to the agency to show how they can generate cash to support their ailing loans. Nama chief executive Brendan McDonagh said the agency will be taking a "hard-nosed" approach with developers.

"There are opportunities to sell assets in certain markets. They might not like the price but we will be saying you have to sell those assets and generate cashflow to support yourself. You either do it yourself or we will take you out of the picture," McDonagh said. "They have to demonstrate whether they can be self-reliant in three years. A lot of these guys are in intensive care."

Nama last week took over the first batch of loans from the biggest developers from Bank of Ireland, EBS and Irish Nationwide building societies on Friday. AIB and Anglo Irish Bank will send over their toxic loans in the next couple of weeks. The first wave of loans accounts for 20% of the €81bn it will acquire. The second round of transfers is due in May.

McDonagh said the agency is prepared to pull the plug on some developments it is acquiring as some of land is practically worthless.

"There were certain loans that were bought purely speculatively. They are... development land without planning permission and in the wrong location. It was never going to work at the top of the market and certainly not going to work now," he said. "We are not going to be putting money into developing more houses or more office blocks if they are not required."