Developer's €42m pay packet could go straight to NAMA
THERE is €42m waiting in a solicitor's office to be paid to the builders of a Dublin shopping centre if the development goes ahead. Most ot it will eventually go to the National Asset Management Agency.
The money has been sitting in an account and will be paid to builder Tristor if it completes the development of a retail park in the Dublin suburb of Carrickmines, according to company accounts.
The news comes after the NAMA-linked developer agreed to help finance the Park Village shopping centre development earlier this year.
Tristor has debts of €52m which are owed to NAMA and overdue since 2009. That puts the state agency first in line for the lion's share of the massive payment. Company accounts for Tristor reveal that the €42m pot is the price for one of the units in the development and has already been lodged with a firm of solicitors.
Some €5m of the total is to be paid as certain milestones in the project are met. The rest will be handed over when the long-delayed project is completed. Until then, however, the cash, paid by an unnamed retailer, stays with the law firm.
If the scheme is not finished, the money is fully refundable, the accounts state.
For NAMA, the certainty provided by the lodged money helps explain why the 25,000sq ft Park Village scheme was one of the first to be backed when the agency earmarked €2bn of its reserves to finish stalled developments last summer.
Tristor became the second developer with loans in NAMA to kick off a Dublin retail project in July.
Tristor is owned by a consortium of investors, including a 20pc stake held by Michael Cotter's Park Developments.
Accounts filed for Tristor show that the original €75m value of the Carrickmines site has been written down to €28m.
Losses to date for the company are €49.8m, the accounts show.