Blow as receivers appointed to UK block
Published 05/11/2011 | 05:00
Developer Tom McFeely was dealt a severe blow yesterday when NAMA put his main UK asset, a London tower block with almost 300 apartments, into receivership.
And Mr McFeely could be facing further action from the state-owned bad bank over other Irish loans he holds.
NAMA, however, didn't take possession of the loan behind Priory Hall, so that development will not come under its ownership.
The Athena tower block, in Newham, east London, is beside the site for the London 2012 Olympics and Mr McFeely and his extended family were hoping to cash in on a rise in prices.
NAMA declined to comment on the debts involved or whether Mr McFeely had personally guaranteed any of the loans. The receiver (known as an administrator in the UK) will now take possession of the asset and ultimately sell it to repay creditors.
Mr McFeely and his partner Larry O'Mahony own a range of properties and assets in Ireland, many of them bought with loans from Irish banks. It is not known how many of these have transferred to NAMA, but the agency can apply pressure to Mr McFeely by speeding up debt repayments or calling in personal guarantees.
It is understood Bank of Ireland was the key lender to the project in London, and that NAMA had taken over this loan. Up to now, NAMA had not pursued Mr McFeely, who has been struggling to keep other creditors at bay.
Mr McFeely and his family own a firm called Inis Developments, which is the effective owner of the tower block -- which includes commercial space as well as individual apartments. The development is located on High Street, Stratford, a busy shopping and residential area.
However, Mr McFeely's UK firm has not escaped fallout from the problems in his Irish companies. According to recent accounts for Inis, his Irish firm Coalport owes the UK firm €7.4m and there is no certainty that it will be able to make good on this.
Inis Developments had sales of €13.7m in 2009 and posted sales of €8.9m in 2010 despite the downturn.