Developers value assets at 2006 levels
Published 25/02/2010 | 05:00
Property developers Bernard McNamara and Jerry O'Reilly are valuing property assets at one of their companies at 2006 levels, saying the valuation is "appropriate'' despite the downturn.
Mr McNamara and Mr O'Reilly value property assets at Belltrap Ltd at €49.8m, identical to the same valuations posted by the company for 2006. The auditors for the company, Horwath Bastow Charleton, say valuations of all property assets are subject to uncertainty because of the downturn.
They place an "emphasis of matter'' note on the accounts of the company which discusses the valuations and whether the company can continue as a going concern. "The directors are satisfied that the current valuation is the most appropriate carrying value basis," it says.
Loans held by Mr McNamara and Mr O'Reilly of more than €5m are expected to move into NAMA at some point this year. Both developers have borrowings across the banking sector.
Belltrap had debtors amounting to €29.4m, up from €15.2m, in the year ended November 30, 2008. The directors also remain confident they can collect these debts.
"The directors believe that the debtors are recoverable and the investment property should be carried at its valuation of €49.8m,'' state the accounts.
Mr O'Reilly and Mr McNamara admit they are aware of the sudden deterioration in the financial and economic environment, but nevertheless believe the valuation is correct.
The company has bank loans worth €51.2m, repayable between two and five years. The loans are secured by a charge over the company's assets.
Mr O'Reilly and Mr McNamara worked together on a number of deals over the years, most prominently as part of a consortium that bought Superquinn in 2005. Mr O'Reilly has a range of interests in retail, office and hotels. He was funded on many projects by Anglo Irish Bank, as was Mr McNamara.
Mr McNamara recently said he was "broke", but was confident the company he led for many years, Michael McNamara and Co, could remain ringfenced from his troubles.