Core Reit CEO wins joint venture legal case
Daniel Donovan, the CEO of Irish real estate investment trust Core, has won a UK legal battle against a property investment firm, after claiming he was entitled to profits from a joint venture with the business.
Mr Donovan, a former Lehman Brothers banker, and a firm owned by him and his family, Naled, sued Grainmarket Asset Management (GAM), alleging that they were owed money from GAM arising from an agreement the three parties had for property development and investment.
GAM is controlled by Mark Crader, who also worked at Lehman Brothers in the 1990s when Mr Donovan worked with the bank.
The two men had jointly invested in a number of properties, but around 2001, Mr Donovan left Lehmans to establish his own fund, Front Point Partners. Mr Crader bought him out of their joint investments at the time.
Please log in or register with Independent.ie for free access to this article.
But the pair crossed paths again, and in 2012 they entered into a joint venture, where money would be raised from investors to buy and convert properties from commercial to residential use in the UK.
Five projects were completed under the joint venture, with former Core Reit backer York Capital, a US hedge fund, among the investors in four of them.
However, by 2014, Mr Crader and Mr Donovan were increasingly having disagreements in relation to the allocation of the joint venture's costs. In 2015, the joint venture came to an end, with Mr Donovan joining Core Reit in 2017.
Mr Donovan sought his share of fees he believed he was due from the five property deals. The court ruled that he and Naled were entitled to those fees.