Writedowns tied to disastrous site investment
Published 29/07/2010 | 05:00
THE main assets of the Dublin Docklands Development Authority (DDDA) include its disastrous investment in the €412m Irish Glass Bottle (IGB) site in Ringsend, through its 26pc share in Becbay, the company set up to buy the site.
According to the DDDA's latest annual report, the development authority has had to take a further writedown of more than €10m on property assets -- on top of a writedown of €186m in 2008.
Most of the writedowns were attributable to the authority's 26pc holding in Becbay.
The DDDA co-invested in the site back in 2006 alongside developer Bernard McNamara and a number of other private investors.
However, the slump in the property market means that site is now valued at €50m, dragging down the value of the DDDA's investment to €13m.
The accounts also show a number of other writedowns.
For example, a number of investment properties owned by the body are now worth €25,918, compared with €34,970 in 2008.
Net assets on the DDDA's balance sheet are now valued at just €4m, down from €26.2m.
According to the figures, the body has also given loans to Becbay to part-fund IGB.
As a result, the DDDA had to include a €4.4m impairment provision in its 2009 accounts, on top of €43m in 2008.