Business Irish

Wednesday 18 January 2017

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.

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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.

Irish Independent

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