Sunday 23 November 2014

Receivership costs build up at Wallace's old construction firm

Gordon Deegan

Published 23/05/2014 | 02:30

Independent TD Mick Wallace
Independent TD Mick Wallace

COSTS linked to the receivership of independent TD Mick Wallace's former construction firm now top €464,000, new figures show.

ACC Bank appointed a receiver to three of Mr Wallace's main property assets in May 2011.

Those properties are the Italian Quarter on Dublin's Ormonde Quay, along with an apartment complex near Croke Park and development land in Rathgar.

The receiver now has a surplus of cash because he has collected rents of €628,609 from the properties between May 2011 and last November.

But the €464,106 costs linked to M&J Wallace Ltd mean that the receiver's surplus shrank to €185,726, according to the figures. And the largest cost to the receivership to date has been a €150,000 payment to the banks and NAMA, while professional fees totalled €105,477.

A report from the receiver lodged with the Companies Office, states that the 11 residential apartments and nine commercial units located in Dublin 1 have an estimated value of €3m. The firm also owns a development site with planning permission at Rathgar, Dublin 6, with an estimated value of €1m.

ACC has no definite strategy in relation to the sale of the assets.

This is in contrast to the approach taken by Allied Irish Banks which recently instructed receiver Gerry McInerney of McInerney & Saunders Accountants to sell a separate lot of assets formerly owned by Mr Wallace.

The property for sale also forms part of the Italian Quarter located on Ormond Quay Lower overlooking the River Liffey comprises of a successful wine bar, a cafe and two office units.

The property has a guide price of €875,000. Hooke & McDonald director Enda Moore said he is in advanced negotiations for the sale of the property.

"Nothing is confirmed yet or nothing is signed, but I would hope to complete the sale in the next three to four weeks," Mr Moore said.

State-owned AIB has already incurred a major loss on €4m it lent to Mr Wallace to purchase a site on Morean Road in Walkinstown that was sold last year for a knock down €510,000.

In relation to the receivership of the ACC-assets, the latest receiver report shows that management agent fees cost €42,932 between May 2011 and last November while planning consultants cost a further €27,376.

At its peak, Mr Wallace's construction business was worth €80m.

Mr Wallace has previously said he owes €40m to various banks. These are understood to include Ulster Bank, AIB and Bank of Scotland Ireland, as well as ACC.

In May 2011, Mr Wallace said that ACC told him that he owed the bank €18.4m.

Irish Independent

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