Back in November 2012, we examined the mystery of why one of Ireland’s allegedly richest men, Denis O’Brien was not in NAMA. After all, he had huge – “systemic”, some might say – borrowings at a NAMA bank and he has dabbled in property. Denis isn’t the only mystery – Sean Quinn has €2.9bn of borrowings with Anglo and famously, has amassed a property portfolio.
Today, we find out that Denis is now buying NAMA property directly from NAMA. Nothing major for the time being, it seems, as the Irish Times reports that Denis has just paid €1m for two adjoining warehouses on the quays in south Dublin Docklands, riverside buildings that seem destined to be transformed into restaurants to serve this bustling commercial area of Dublin. And good luck to him with the development.
Now, Denis was none too pleased when the Sunday Independent reported on his borrowings with Anglo, or IBRC, though the Sindo did stress that Denis “has not missed an interest payment and is considered the bank’s best-performing large borrower” The paper stopped short of reporting if the loans were performing or were in breach of any loan covenants including Loan to Value covenants, but it should be stressed that there is no evidence whatsoever that there is any such non-performance or breach. The paper went on to report that Denis was “understood to be hoping” to reduce his borrowings at Anglo to €300m in 2012 – there was no word of borrowings, if any, at other NAMA banks.
Of course, by remaining out of NAMA, Denis is free to buy NAMA assets even if – and to stress, there is no evidence of this at present or of there being a prospect of it in future – he were to be in default on his loans.
Shrapnel or loose change for Dennis…he pays his driver 100 Euro to call his wife :)
Still nice of him to give the listing to Jones Lang,is John Mulchacy still the effective “owner” there,he was at one point it’s largest shareholder……
“I’m scared I’m going to be late,” he said, driving between the Congress Centre and the Belvedere. “If I am, she’ll kill me. Gary, I’ll give 100 euros to call her and tell her when I’m coming home.”
http://www.bloomberg.com/news/2013-01-25/billionaire-o-brien-finds-linger-free-zone-in-davos-meets.html
Broadsheet had some “fun” with this.
“The paper went on to report that Denis was “understood to be hoping” to reduce his borrowings at Anglo to €300m in 2012″. Is this largely his CommuniCorp borrowings? I think I might have read that DOB reduced this loan in 2012 in exchange for taking a larger equity stake in CommuniCorp?
Is this over and above the write offs in the Siteserv deal? Or are we just talking about debts directly owed and not debts of in-potentia money making exercises?
It seems to me that the Irish business community is playing a collective game of fantasy football with the ledgers of Irish banks and businesses. Money is owed, not owed, written off, lent again, used to buy other loans, debts, obligations, written off, ramped up, leveraged, rehypothecated, moved off balance sheet, back on, transferred, converted to shares, from shares, from profits, to dividends, in new companies, old companies, group companies, accounts in the Caymans, Douglas, Dubai, Dublin, down Des Traynors desk , and up the Chim Chim Cher-ee , with not one penny of tax being paid throughout and the public having to pick up the tab for any and all losses incurred.
Ireland needs major, sweeping, rationalising reform of company law and accounting practices.
“And good luck to him with the development.”
I am truly shocked…
Which one of you Namawinelaker’s wishes Denis well?
Not too long ago you people were building a cross for him to be crucified on!!
@Sporthog by all accounts the sale was handled in an open and transparent manner-really-it was listed by CBRE-widely and openly marketed and achieved slightly over ask-no complaining/bitching on this one from me:)
@ John Gallaher,
When I refer to Namawinelaker’s………. I am not referring to the bloggers like yourself, WSTT or OMF etc.
I am referring to the people who are behind the Namawinelake name, the bunch of people who contribute the various articles etc.
It’s like Dr Jekyll & Mr Hyde on here at times.
For a while I strongly suspected that perhaps a previous disgruntled employee of Denis was had joined the NWL team and was writing with “a different agenda in mind”.
Possible…….not possible……… but certainly not that far fetched.
@Sporthog, good luck to anyone taking those two campshire buildings -last time I saw them, someone was taking a leak on the side of one – they will need major renovation, and if anyone can transform them into useful buildings, restaurants or the like, then good luck to them. There was nothing controversial about this transaction, was there, unlike Siteserv, dealings with Independent News and Media and the fallout from the findings of the Moriarty Tribunal.
Cost 1,000,000
Or 100 a sq.ft.
Reno/Build Out etc say 500,000
To achieve a 10% return on cost rent of 15 sq.ft.
Slap a bit of yield enhancing debt on it,mid teen return….
Add in a few “portolets’ vola nice deal in a upcoming area.
@John, I think it’s a bit more challenging because, as run-down as these buildings are, they’re probably protected (would need check but thought most original campshire structures were), so creating a wall of glass for diners to gaze across the Liffey at the National Convention Centre and Beckett Bridge might be difficult, and diners might have to make do with looking back out on the traffic on Sir John Rogerson’s Quay. Has potential but it’s not a sure bet.
@NWL is there still fast track planning in this area?
Still possibly creates a few jobs,enhances the area if couple of new restaurants open.
Didn’t NAMA pick these us as ‘compo’ from the ‘DDA’ ?
Interesting that Jones Lang appointed so quickly,unlikely DOB has time to filter tru all the deals out there.
Would not be too surprised if JL has a good viable plan perhaps with a tenant or two in tow….
But yes I may be well off on my reno numbers and start up restaurants have highest failure rate of retailers,highest build out too.
@JG, “fast track planning”? Of the variety apparently promised by the DDDA to Bernard McNamara back in 2006 when they were incinerating €412m on the Irish Glass Bottle site? I don’t think so, but I seem to recall objections to changes of campshire buildings – buildings between the roadway and pier/quay – on the north quays. Dublin could do with a decent riverside restaurant, but to change this building to give punters access to the river will be difficult. Denis O’Brien fans will now be closely watching planning applications!
@NWL yes that type of planning….perhaps NAMA would consider a ‘start up’ programme for retailers,quite successful over here-early days but has traction.
Fixing these up renting them out and adding value is called ‘asset management’ over here….
http://retailtrafficmag.com/management/siteoptimizer/tenant_incubators_take_off_05152012/