The report and accounts for 2009 are published today in two parts – part 1 and part 2. In brief the DDDA turns in a loss of €23m for the year on top of a loss of €226m for 2008. The Irish Glass Bottle site bought for €412m by the Becbay consortium in which the DDDA has a 26% share was worth a total of €50m at the end of 2009 according to Lisney valuers, a valuation that has not changed at all since the end of 2008 – see page 20 PDF of part 2. This must be one of the very few Irish development sites not to lose value in the 12 months to the end of 2009! Lisneys are on NAMA’s valuation panel. Even though the valuation of the IGB site has remained constant, the DDDA has revalued other property downwards by €9m (from €43m to €33m approx). And that €50m valuation on the IGB site is subject to a few assumptions that might be far from being certainties. This is what the note to the financial statements says (page 43 PDF from part 2).
“The key assumptions used in the valuation as at 31 December 2009 were:
(a)The Draft Poolbeg Planning Scheme will be approved by the Minister for the Environment, Heritage & Local Government without undue delay and there will be no significant alterations in the adopted plan.
(b)The proposed scheme of development will comply with the density and use guidelines, as set down in the Draft Poolbeg Planning Scheme.
(c) no onerous soil contamination issues exist on the site.
(d) The standard inputs used in preparing the residual development appraisal, such as, inter alia, construction costs, rents, yields and estimated sales prices, are as at the valuation date, 31 December 2009.
The independent professional valuation report concluded that the market value of the Irish Glass Bottle development site as at 31 December 2009 was €50 million (2008: €50 million). The Authority has recognised its relevant share of the gross assets and gross liabilities of Becbay Limited as at 31 December 2009, resulting in a share of net liabilities of €75.1 million (2008: €74.7 million)
being reflected in the consolidated balance sheet.”
Loans associated with the IGB site continue to drain €4.4m interest from the DDDA each year. Furthermore Becbay still has ongoing operating costs of which the DDDA’s share is €0.4m per year so in total the IGB site continues to suck just under €5m from the State each year. Some other nuggets of misery from the report
1. The former chief executive, Paul Maloney, was paid €121,000 for 7 months work in 2009 and then a further €128,000 as payment in lieu of notice bring his remuneration to a total of €249,000 for the year.
2. The DDDA acknowledges legal issues facing it but “believe that these will be successfully defended and will not result in material liabilities for the Authority” – I wonder what Bernard McNamara would make of that.
3. The DDDA made an operating loss on continuing activity of €7m for the year.
4. Legal fees of €1.143m were incurred during the year on top of the €5.648m incurred last year. Marketing fees were €0.6m this year compared with €3m last year.
For a more detailed analysis of Becbay including the latest accounts, see here. For a detailed history of the Irish Glass Bottle site, see here
NAMA Wine Lake 