According to yesterday’s edition of Iris Oifigiuil, NAMA has appointed a receiver to yet another Cork-based developer, Dwyer Properties Limited. It looks like a property receivership, rather than a share receivership, since the receiver is Frank Ryan of DTZ Sherry Fitzgerald. Dwyer Properties has been in liquidation since June 2010, so this latest move by NAMA seems to be aimed at improving its position in recovering outstanding loans. Associated with David Dwyer, the company was responsible for a 52-house development at Mariners Cove, Baltimore, Cork.
Separately the Irish Examiner reported yesterday that NAMA has sought to liquidate two companies in the Ray and Danny Grehan empire, Glenkerrin Properties Limited and Glenroyal Leisure Limited. The public breakdown in relations between NAMA and the Grehans is a highlight of this year, with both sides seeming to take the matter personally – indicated by Ray’s public pronouncements and NAMA’s apparent zeal with pursuing assets and dealing with the family’s assets. NAMA’s application to appoint liquidators to the two Grehan companies is being contested at the High Court and the case continues. Interestingly the Examiner reports that the addresses of both of the Grehan brothers are in the UK – Bateman’s Row, Shoreditch, London (Ray) and Princes Park Parade, Hayes, Middlesex (Danny). There has been speculation that the Grehans may file for bankruptcy in the UK – another NAMAed developer John Fleming (pictured here in a recent information-rich article by the Southern Star) is due to emerge fromUK bankruptcy this coming week.
Remember you can see a comprehensive list of Irish foreclosure action by NAMA here and in this regularly updated spreadsheet.
NAMA Wine Lake 
It is intriguing to watch the feud between NAMA and the Grehan brothers. It’s almost as entertaining as a caged bare knuckle fight. Although to be fair, it’s more like a schoolyard bully “kicking the bejasus” out of the first former when he’s on the ground.
Truth to tell, NAMA may be biting off more than it can chew.
It hopes to sell the Grehan Bros Grange development in Foxrock (opposite the Galloping Green) in the immediate future having purchased it at what now looks like an inflated valuation of €30 million. It represents what NAMA regards as its best residential asset in South County Dublin and it is therefore on the block, through Hooke and McDonald, in order to set the price levels for the detritus that will follow.
But will it live up to NAMA’s expectations?
A dose of reality is about to hit the agency. Welcome guys to the real world of Dublin property! NAMA thinks it has an investment property for sale. In reality, it is a majority development site with 120 unfinished apartments, a creche and a nursing home to be built. There is an unpaid levy due to DLR Co. Co. that is north of €5.3 million. The creche is a loss leader and no-one in their right minds would build a nursing home in the current environment even if they could raise the development finance – which they can’t.
Even the completed investment property on the site is overlet. The 100 apartments (of which the majority are one bedroomed) is 20% overpriced and the 43,000 sq.ft of commercial office space (of which 50% is let at an average of €20 per sq. ft. with breaks in 2/3 years time) has a current rental value of €8 to €10 per sq. ft.
It won’t sell for NAMA’s purchase price, nor anything like it. For Plan B, NAMA may well decide that their alternative is to sell the apartments in the completed block individually. Such a move might bring in about €20 million gross; less, of course, the local authority levies of €5.3 million that DLR will require. But NAMA would be left with a currently unsalable development site.
This is not London and as I said reality is about to dawn. Welcome to the Irish market, because this is where your losses will be made.
Best foot forward, lads – we are all watching this one with interest, not just the Grehans. We will now see what you are made of and how well you will serve the Irish taxpayer.
It’s not a ‘ crime ‘ to do a bad RE deal.
There should be more collective responsibility and accountability for what happened.
@WSTT, it is now being reported that NAMA is to fund the €5-10m required to complete the unfinished parts in Block G of the Grange development. It is also reported that NAMA rejected an offer of €27m for the entire site, and was looking for €35m. NAMA is said to be renting 30 apartments for between €1,250- €1,300 per month. So this one looks like a hybrid of NAMA strategies – rent, develop, hold.
http://www.irishtimes.com/newspaper/commercialproperty/2012/0111/1224310093768.html
@john gallaher; No, it isn’t, John. The crime was committed in September 2008 when the government and the Department of Finance gave a blanket guarantee to the policyholders of all the Irish banks. That was the crime.
But it doesn’t suit anyone in power to ‘fess up to it. Demonise the developers instead…. or the bankers… or the Eurocrats….. anyone but the people that socialised the banks’ / developers’ private losses and passed them to the people. They were the criminally insane. Our politicians.
People need to get over the demonizing of RE developers for most part they are broke done dusted.
The other post highlighted the morbid Irish market its has to get moving started.
Is Nana the answer or part of the problem ?
@wstt, interesting and informative analysis on the Grange there. For info my understanding is that BOI are still funding NH development, quite actively was my information.
ESB to cut off Power to Sewage Pumps in Housing estate in Donegal over non Payments of Fees by Development Company that is in receivership.
@Patrick, any link to a source, can’t see it as a recent news story.
Link, with audio, here:
http://www.highlandradio.com/2011/11/07/esb-threatens-to-cut-off-power-supply-to-sewage-system-in-glencar-estate/
Older story about a Longford estate with the same dilemma here:
http://www.longfordleader.ie/news/local/homeowners_cry_foul_over_sewage_problems_1_1957639
@Don Giovanni, I am aware of recent applications made to BoI for funding nursing home developments. They are paying “lip service” to funding nursing homes. In fact, when asked, they don’t even put the proposals to their credit committee, citing uncertainties and possible cuts in the government’s “fair deal” nursing home payment scheme.
http://www.rte.ie/news/2011/1007/fairdeal.html
@wstt would the above nursing home be “grandfathered” in as site work commenced.
B of I has a credit committee?
“The availability of capital allowances on independent living units built near to and operated in conjunction with a nursing home was first introduced in 2002. The allowances, which are effectively a tax break for the developer, were due to expire in March 2007, but last year the deadline was extended to April 2010 and the tax life was increased to 20 years from 15 years.”
http://www.hbcl.ie/news_sprightly.html
Not up to speed as to why ESB would have to do such a thing,Could someone explain it???
@john gallaher, No, it is a new site. Capital allowances are now worthless, many people having paid a lot of money for them. There is no honour when politicians change direction.
@wstt if ever there was an appropriate time to introduce some targeted incentives/tax breaks to kick start the industry its NOW.
@patrick it a petty shi..y thing to do but they do have exorbitant payroll to meet.Keep in mind the little old lady that was jailed,take a look at the culture.
Similar to the bond payment inexplicable.
The star of the outgoing chief executive has been waning for some time and much of this has to do with the very large salary awarded to him — about €750,000 — at the peak of the Celtic Tiger.
Read more: http://www.examiner.ie/business/business-features/esb-opts-for-a-safe-pair-of-hands-172188.html#ixzz1d8vP8TkZ
@NWL, It shows a complete lack of knowledge when the “spinmasters” quote €5 to €10 million to complete the work. Which is it? There’s a big difference.
Sounds to me like a bunch of bar room “wannabe” developers talking through their assholes. Nobody mentioned the €5 million plus that’s owed to the loacal authority. If I was advising them, I would tell them to take the money on offer. It was a good offer. Whoops…. I haven’t seen it and I am falling for the spin. It’s probably conditional.
The problem is that they are stuck. They have said that they won’t take a loss on the purchase prices that they paid for assets. Hence the fudge. In the end they will regret the decision on this one. Any upside on the €27 million (if it was real and unconditional) will be hard earned.
I’d like to see their figures, but I’m sure that they are over-optimistic if they are going down this road. What do they say about believing your own BS?