'Millionaires' Row' developer seeks support from NAMA
PARKWAY Properties, the company which developed the luxury complex at Abington, Malahide, where David Drumm and singer Ronan Keating are among the owners of properties, is in talks with NAMA over securing future financial support.
The houses at Abington were described during the boom years as "Millionaires' Row''. The additional features in the homes meant they received extensive press coverage and several are believed to be up for sale at present.
The period-style mansions were popular with many well-known buyers and Yvonne Keating, wife of the singer, helped to front a campaign for Parkway during a lull in the property market post-2001.
Parkway Properties is sitting on €10.4m of accumulated losses and will have to hold an egm as its net assets are less than the value of the share capital in the company.
The company is awaiting indications from NAMA on whether it will give future support. There is also uncertainty about the ability of the directors and shareholders to provide the "necessary financial support".
The auditors to the company said the lack of transactions in the property market makes it difficult to value the firm's assets at present.
The company had its loans transferred to NAMA in July 2010 and the directors said they cannot foresee how this will impact on loan finance in future. "Interest continues to be rolled up on the group loan facilities," they said.
"The NAMA business plan review process is ongoing at the date of signing of these financial statements. The directors are of the opinion that NAMA will approve the business plan as presented.
"The impact of NAMA and the continuing decline in the property market are factors outside the control of directors and shareholders and their impact on the group cannot be accurately determined at the date of signing."
The company has a deficit of shareholder's funds to the tune of €10.4m and total creditors of €18.4m, which are all due within a year, according to accounts for 2010.