It seems that the Irish Times and Irish Independent are now publishing syndicated reporting from Irish journalists. Today in both newspapers, freelance reporter Gordon Deegan, writes about NAMA Top 10 developer – known to many of you as “the man in the fedora stuffing the trunk of a Range Rover with Brown Thomas bags” – 61-year old Gerry Gannon, whose British company, Gannon Homes (UK) Limited has filed accounts for 2011 which apparently show profits of GBP 360,000 (€445,000) for the 12 months ending December 2011. It is hoped that the accounts can be linked here tomorrow as there were difficulties accessing documents on the UK’s Companies House website today. So for the time being, we are mostly relying on Gordon Deegan’s reporting.
Gannon Homes (UK) Limited is owned by Gerry Gannon, with 71-year old Michael Anglim holding a 1% stake. Its directors are Aidan Kenny, Michael Anglim and Gerry Gannon. It owes NAMA about GBP 25m (€31m) and says that, although it can cover existing loan interest commitments, repayment of loans will depend on the market returning – “the directors are of the opinion that all loans can be repaid as and when the market returns to enable the completed units to be sold”. The recently-published fiscal outlook from the UK’s Office for Budget Responsibility forecasts residential prices to increase by 0.7% in 2013, 3% in 2014, 3.8% in 2015 and 4% in each of 2016 and 2017 – but as with the outer years of most economic forecasts, the figures should be treated cautiously.
UK residential prices are down about 11% from the peak in October 2007 but there are wide variationss by region, in Northern Ireland prices are down about 55% whilst in London prices have been essentially flat, but even in London, there are wide variations across what is a vast metropolis. What degree of return in the market required by Gannon Homes in order to repay the loans isn’t clear, but given declines in UK national house prices in recent months, the prospects would appear to be in the lap of the gods.
Gannon Homes (UK) is separate to Gannon Homes in Ireland is operated through a different network of companies, this is the Irish website and it is understood it owes some €200m to NAMA. Gerry has vast additional borrowings to qualify him as a NAMA Top 10 developer and over the past year has been disposing of assets at a fair pace, including the “Chrome” portfolio of UK residential/commercial properties, the 49% stake in the K Club in Kildare and several odd-job properties in the UK.