Wallace boom site fetches just €500k
Published 15/04/2014 | 02:30
A SITE bought in the boom by TD Mick Wallace's construction firm with a €4m loan from AIB has been sold for around an eighth of its former value.
Bank-appointed receiver Gerry McInerney raised €510,000 from the sale of the site at Morean Rd, Walkinstown in Dublin 12 that was formerly owned by M&J Wallace Ltd.
The price is 87pc less than the €4m that Mr Wallace borrowed from AIB to pay for the site, with planning for 28 units.
Details of the sale are contained in a so-called receiver's extract just lodged by Mr McInerney with the Companies Office. The site was sold on March 3 to O'Connor Cabins Ballisodare Ltd.
The price achieved was actually up on the initial valuation of €350,000 placed on it after AIB appointed Mr McInerney as receiver in September 2012.
However, it is 87pc down on the €4m that the bank would have been looking to recoup.
Mr McInerney of Swords firm, McInerney Saunders, has also overseen the sale of an apartment taken over, also as part of the receivership, with €65,000 realised from the sale.
The filing to the Companies Office shows that marketing and legal fees connected with the two sales were €22,450.
At its peak, Mr Wallace's construction business was worth €80m. Mr McInerney was also appointed receiver to apartments 1, 2, 5 and 6 at 43 East Essex St in Temple Bar in Dublin 2 and these are now valued at €1m. Their former value topped €2.5m.
Wallace properties at Quartiere Bloom were put up for sale last month.
In 2012, the Independent Wexford TD admitted deliberately under-declaring €1.4m of VAT paid to M&J Wallace.
Efforts to secure comment from Mr Wallace or Mr McInerney yesterday were unsuccessful.