Saturday 24 March 2018

€315m paid for land bank now worth just €38m

Paul Melia

Paul Melia

IN 2006, at the height of the property boom, a consortium of three developers paid €315m for a 408-acre plot of land just outside Naas, in Co Kildare, which would become the Millennium Business Park.

At the time, it was the highest-ever price paid for land. Today, it is valued at just €38m, and is controlled by NAMA.

The group behind the purchase, Osberstown Developments Ltd, are low-profile developers Thomas Considine, Patrick Sweeney, from Galway, and Gerard Prendergast, with an address in Naas.

Osberstown is sitting on massive losses of €352m and its borrowings are controlled by AIB on behalf of NAMA. Sources in NAMA confirmed it had sold a 28-acre portion of the site to the Kerry Group but refused to reveal the price.

Accounts filed with the Companies Registration Office last month also show Osberstown's auditors cannot verify the land bank is worth €38m, because the property market has collapsed.

The valuation was carried out in November 2009 by estate agents CBRE.

Based on the current valuation, the amount paid by the Kerry Group is likely to be around €2.5m for the 28-acre site.

Had it been purchased during the boom, it could have fetched €21.5m.

Irish Independent

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