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€412m site will go for fraction of boom price

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The site of the former Irish Glass bottle plant in Ringsend

The site of the former Irish Glass bottle plant in Ringsend

The site of the former Irish Glass bottle plant in Ringsend

ONE of the highest-profile landmarks of the property boom and bust is set to be sold for a fraction of its original price after NAMA appointed receivers to the company that controls it.

The state bad bank last night appointed receivers to BecBay Limited, the company that owns the site of the old Irish Glass bottle plant in Ringsend in Dublin 4.

The site became one of the symbols of the boom when Becbay, whose shareholders include developer Bernard McNamara, financier Derek Quinlan as well as the Dublin Docklands Development Authority (DDDA), paid €412m for it in 2006.

However, the site could be sold for barely a tenth of that price now. Becbay's most recent accounts put a carrying value of around €30m on the site at the end of 2009 but said it was "difficult to establish a valuation for the site". Estimates put a potential sale price at between €50m and €60m.

Fallout

NAMA has appointed Mark Reynolds and Glenn Crann of Savills as joint receivers over the business and is expected to sell the site as soon as possible. Mr McNamara owns 41pc of the company while Mr Quinlan has a 33pc interest. The Dublin Docklands Authority has a 26pc stake.

The fallout from the deal has had repercussions leading to the near financial ruin of Mr McNamara while the DDDA has had to receive state aid.

Last November the DDDA transferred nine docklands sites to NAMA in return for being released from loan guarantees it gave at the time of the original deal.

While most of the Becbay loans are non-recourse, it is understood that the shareholders, including the DDDA, provided guarantees for €112m of its borrowings.

Irish Independent