Sunday 30 April 2017

NAMA developer can pay himself €5,000 each week, rules UK judge

Emmet Oliver

Developer Ray Grehan is entitled to pay himself €5,000 a week, a UK judge ordered yesterday, despite objections from NAMA, which has put most of his assets into receivership.

NAMA was granted a worldwide order freezing any asset sales by Mr Grehan in a London court yesterday. NAMA said it was prepared to allow Mr Grehan to draw "expenses" of €1,250 a week, but this was raised by the judge. NAMA is expected to appeal this.

Mr Grehan declined to comment last night on how much he would be able to pay himself, but his dispute with NAMA is growing increasingly bitter.

NAMA has already objected to Mr Grehan's control over properties in Canada and New York. Mr Grehan has expressed strong disappointment with NAMA's conduct and accused it of not knowing how to manage his assets in ways that benefit taxpayers.

This week NAMA moved to halt the sale of a New York apartment beside the Rockefeller Centre, owned by Mr Grehan and his wife, which could fetch almost $1m (€760,000) if sold.

The agency is seeking "emergency and provisional relief" from the courts in New York to halt the sale, saying it should get the proceeds if the property is disposed. The agency has an existing Irish judgment against Mr Grehan for €269m.

The Irish Independent understands Mr Grehan has sought to sell the property and contact about the transaction has taken place between his representatives and NAMA. However, NAMA appears to be objecting to the sale going ahead.

The property would sell for about $950,000 (€722,000), and the mortgage on the asset -- from AIB -- is understood to come to less than $300,000 (€228,000).

Transaction

As a result, NAMA is pushing for the New York courts to effectively stop the transaction. It has made an ex-parte application through a US law firm.

The apartment was purchased in May 2007 for $1.38m (€1.04m). Mr Grehan confirmed last night the apartment was owned by him and his wife, but declined to comment.

Mr Grehan also owns an apartment at One Hyde Park in central London, which NAMA is trying to sell to pay down the developer's debts. Mr Grehan, however, claims the apartment is owned by a trust for the benefit of his family.

A judgment has also been registered against Mr Grehan's brother Danny.

Irish Independent

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