Back building: O'Reilly and O'Flynn plan Dublin houses
On the heels of a €155m Jurys deal, Joe O'Reilly is planning to build 166 homes in Drumcondra
Published 26/07/2015 | 02:30
A firm linked to Joe O'Reilly, one of Nama's biggest clients, has teamed up with Oaktree Capital Management to build homes in north Dublin.
Planning permission is being sought for a 166-unit residential development on Grace Park Road, Dublin 9, by CTN Developments. Its ownership is not publicly disclosed because the company is unlimited and its assets are held in trust, but the Sunday Independent understands it is linked to O'Reilly and the construction business he part owns, Castlethorn.
Grace Park Road is a residential neighbourhood close to Dublin city centre.
The finance for the project is thought to be coming from a sub-fund of Targeted Investment Opportunities, which is run by Oaktree Capital.
O'Reilly was one of the most high-profile developers to enter Nama following the 2008 financial crisis. In an appearance before the Banking Inquiry last week he said that he owes Nama about €2bn in personal and business loans.
O'Reilly said he expects this to be paid in full, partly by the sale of loans attached to Dundrum Town Centre, which he developed in partnership with the late Liam Maye and businessman John Fitzsimons.
The sale of debt attached to the retail hub - dubbed 'Project Jewel' because of its high value - is now underway.
Last week O'Reilly emerged as the preferred bidder in the sale of the former Jurys and Berkeley Court hotels, which sit on some of the most valuable land in the country.
The €155m bid by another of his construction groups, Chartered Land, is backed by the Abu Dhabi Investment Authority. The bid is less than half of the €380m paid by bust developer Sean Dunne for the property in 2006.
Cork developer Michael O'Flynn, meanwhile, is also about to receive a planning decision from Dun Laoghaire Rathdown Co Council on plans for his first new residential housing development since leaving Nama.
Michael O'Flynn wants to build 164 new high-end homes - with a pricetag of up to €1m each - on a site in Cabinteely, South County Dublin. The development will cost an estimated €75m to complete. The development is being financed by his O'Flynn Capital Group, an investment vehicle backed by private investors.
Appearing before the Banking Inquiry last week, he said there was an urgent need for housebuilding in the country's major cities.
Loans attached to O'Flynn's construction empire left Nama in 2014 when they were sold to private equity firm Blackstone.
Following an acrimonious dispute, the two parties reached a settlement earlier this year - leaving O'Flynn Group with mainly development assets while Blackstone took control of foreign properties developed by the business.
Sunday Indo Business