Banks backing Dunne's Jurys site bear brunt of €12.2m loss
The banks who backed Sean Dunne's expensive property gamble in Ballsbridge and who own most of the Jurys Berkeley site are now suffering losses on the same property themselves.
The banks -- Ulster, Rabo bank and Iceland's Kaupthing -- own the Jurys site and hold it through a company called Zrko, which has reported losses of €12.2m in its first full year of operations, stretching from September 2009 to December 2010.
The property is believed to be rented out to Dunne's D4 Hotels, with the lenders taking over the site ownership from September 2009. Dunne is responsible for developing the site, which recently gained a planning green light from An Bord Pleanala.
The property is currently valued at €78m but the banks made it clear in the first ever set of accounts that the plan was ultimately to sell the site.
"The company has rented out the property during the period,'' they pointed out. "It is the intention of the directors that the company will continue with its current activities until the resale of the property,'' the directors added.
In terms of what caused the losses, the accounts stated: "Direct operating expenses arising on the property during the period amounted to €13.1m, which includes interest expense of €12.3m." However, there was rental income of €871,573.
Dunne and the financial backers of the site were recently given the green light to build hundreds of apartments and a hotel on one of the most expensive sites in the country.
An Bord Pleanala approved a massive redevelopment of the Jury's Berkeley Court site in Dublin 4, but nothing will be built until at least 2016.
Mr Dunne bought the site in Ballsbridge in 2005 for €380m.