| 2.9°C Dublin

Gannon Homes 'won't sell into weak market'

GERRY Gannon's Gannon Homes has insisted it won't sell houses into a depressed market, despite being dependent on the NAMA for survival.

The position of one of Dublin's biggest landowners is revealed in new filings with the Companies Office, which were signed off by Gannon Homes' directors on October 7.

Gannon Homes' directors confirm that the company booked losses of more than €50m in 2008 and that the firm is now "dependant on Nama support to continue as a going concern".

But the company insists, in the accounts, that the losses suffered in 2008 are unlikely to materialise since they include "extremely conservative" property valuations that triggered €33m of asset writedowns.

"While the directors recognise accounting standards must be adhered to, it is not expected that the losses that would be realised if stock was sold at current market prices will actually be realised," the directors added.

"The directors do not feel it is wise, nor is it their intention, to sell the stocks in the currently depressed market."

Gannon Homes' position is at odds with NAMA, which has been encouraging developers to sell off assets at the prevailing prices so they can service loans and reduce their indebtedness.

In their statement, Gannon Homes' directors say they have submitted a business plan to NAMA and are confident that it will support this and enable the firm to "trade through the difficult conditions".

Irish Independent