The Irish Independent today reports on the sale of a property in England – you can read the “what” here. The property is called “PGS Court” and is located in a town called Walton-on-Thames which is a few miles outside London. It is a 31,000 sq ft office block on 1.6 acres and you can see an advertisement for the building in 2009 here. There are two players in this story. Firstly, there’s the Dunner himself, Sean Dunne who has recently filed for bankruptcy in Connecticut. And secondly there is Michael Fingleton junior, the 31-year old son of the former CEO of Irish Nationwide. Here’s the chronology, money is shown in sterling (GBP)
1999 Sean Dunne buys the property for GBP 9.3m
2012 (January) Sean sells the property for what the Independent says was “half that sum [GBP10m]” or GBP 5m. It is unclear who Sean’s estate agent was, but in 2009, it was being marketed by a small firm of estate agents, Quinton Scott, based in Wimbledon, south west London
The buyer appears to be an Isle of Man company called Kulio (IOM). However, another company, Hibernian Capital Limited incorporated in the UK and whose sole director is Michael Fingleton junior, has been described as the landlord of the building and according to the Independent, “his name appears on planning application documents” relating to the building.
2013 (February) Hibernian Capital leases the building to Kia Motors on 15-year lease. Hibernia was reportedly represented by Quinton Scott. Kia was represented by Savills.
2013 (April) Michael Fingleton junior is now selling the property with asking price of GBP 12.3m (selling agents reported to be Savills)
The reason this transaction is of direct interest to you is that the sale in 2012 was, according to the Independent, at the behest of creditors, namely Bank of Ireland which we 15%-own and in which we have €1.5bn of preference shares, and Bank of Scotland.
Of course the GBP 12.3m now reported is an asking price, but does anyone else think that it is a remarkable increase in 14 months, from GBP 5m to GBP 12.3m? According to IPD, commercial property generally in the UK has declined by 3.8% in the past 12 months.
Sean Dunne had a long standing relationship with Irish Nationwide. According to the Richard Curran special on RTE in February 2013, Sean owed Irish Nationwide €131.5m in December 2006.
If the Independent article is correct, particularly as regards the sale price last year and the asking price now, surely Bank of Ireland should be asking how the building has more than doubled in value in the space of 14 months.
NAMA Wine Lake 
its a cut and paste job from yesterdays mail on sunday :)
@JG, thanks, hadn’t seen that. Well, at least the Quinton Scott angle is emphasised above as is SD’s exposure to Irish Nationwide. But yes, well done to Michael O’Farrell at the Irish Mail on Sunday and yes Cormac Quinn in the Indo today might have credited the story.
Indo is laughable really, right next to the Fingleton story today on page 4 in the Indo is a report from Charlie Weston in which he says Ulster Bank “is to charge customers €4 a month for using a current account, the Irish Independent has learned”, a few pages later on page 15 there is a 1/3rd page advertisement from Ulster Bank setting out in detail how it will be charging certain current account customers €4 from July 2013!
@NWL-MonS has interesting NAMA position-approved,but unsourced.
The deal has been nominated for an award in London. Up against our old friends Blackstone….
http://www.oasdevelopmentawards.co.uk/Index.asp
Would say that the value of the building would’ve increased significantly by signing a new lease with a company like Kia Motors. Empty office buildings unfundable in UK at the moment….
Still nice to retain agent that sold it to you….to resell it after sourcing tenant,that would be kinda like a favour….or perhaps the parties involved all have long standing business relationships…oh hold on!
Looks like everybody’s kicked a goal
Sean and Michael Fingleton snr enjoying the match 2008
http://www.independent.ie/irish-news/dunne-is-still-reaching-for-the-sky-26428930.html
Hasn’t it now got a 15 year tenant. Wouldn’t that put a premium. What I’m surprised is the lack of change since 1999. Btw, won’t this symbol do £ instead of your GBP. I don’t think it’s being used anyplace else now we’re jettisoned it.
Looks like it could be something often referred to as financial engineering.
@DJ in the barron’s own words-this NYT’s piece just never gets old-is that the same suit…..from the recent splash on good friday in Indo.
Assuming it/they are bespoke suits perhaps it will be listed,when we eventually get a peek at the assets or lack there off.Can someone pop by a salvation army store or charity shop and get an estimate for a worn out,old suit-no not a developer :)
“Jealousy and begrudgery are still alive and well in Ireland, and whoever eradicates them should be prime minister for life,” he says as he tucks into a heaping plate of gravy-drenched turkey and mashed potatoes in the restaurant of one of the two hotels he owns — and is hoping to raze. “It’s part of the Irish psyche and it is the result of 800 years of being controlled by other people, of watching everything the master or landlord is doing.”
http://www.nytimes.com/2009/01/04/business/worldbusiness/04ireland.html?pagewanted=all
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