Thursday 13 December 2018

Davy Property arm targeted by Carval over retail project loans

Debts of €58.6m had been racked up by 2016 by a company called Inverine Plc that was set up in 2007 to advance the retail project. Stock image
Debts of €58.6m had been racked up by 2016 by a company called Inverine Plc that was set up in 2007 to advance the retail project. Stock image
John Mulligan

John Mulligan

Land that was to be used to develop a major new shopping centre in Tullamore, Co Offaly, with backing from Davy Property Holdings, has come under the control of a receiver who has been appointed by US vulture fund Carval.

Debts of €58.6m had been racked up by 2016 by a company called Inverine Plc that was set up in 2007 to advance the retail project, which was a joint venture between Davy Property Holdings and two businessmen - Eamonn Duignan and John McCarthy, both of Navan, Co Meath.

The appointment of Ken Fennell from Deloitte as receiver over the specific assets at Davy Property Holdings, which is connected to Davy Stockbrokers, is part of a wider move by Carval's Dublin-based Callington Property Finance vehicle on a number of firms this month that were also controlled by Mr Duignan and Mr McCarthy.

Other assets held by Davy Property Holdings are unaffected by the receivership.

Mr Duignan and Mr McCarthy entered a joint venture in 2007 with Davy Property Holdings to develop a shopping centre in Tullamore.

Mr McCarthy and Mr Duignan each held 25pc of the venture, with Davy Property Holdings holding 50pc.

Inverine paid €42m for a 3.7-acre site in Tullamore in 2007.

But the planned shopping centre was never developed and the land earmarked for it has since been generating modest income from its use as a carpark.

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