Gannon’s UK properties plunge by 40pc
ONE of the biggest developers in north Dublin, Gerry Gannon, has seen his UK assets plunge in value by 40pc. However, he remains confident that Anglo Irish Bank will keep supporting his British unit.
The value of land and buildings owned by Gannon Homes (UK) Ltd fell from £22.6m (€26m) to £13.5m (€15.5m) after they were valued by estate agents Savills and Allsop.
Auditors Copsey Murray said the firm was unable to “provide sufficient evidence that the necessary bank financing will continue to be available to the company’’.
The firm has bank loans and overdrafts worth £22.3m (€25.6m). These are secured by a charge over the land – but also by a personal guarantee and indemnity by Mr Gannon.
Loans provided by Anglo Irish Bank are repayable on demand. But Gannon Homes (UK) Ltd said: “The directors are confident the bank will continue to extend facilities as required to complete ongoing developments.’’
The company now has a £10.2m (€11.7m) deficit in shareholder’s equity, down from the previous year, when there was positive equity of almost £90,000 (€103,000).
Irish banks and developers are hoping for a strong recovery in the British property market in 2010. Anglo, AIB, Bank of Ireland and Irish Nationwide all have large loan portfolios and these are expected to return value far more quickly than those in Ireland.
NAMA is expected to become a substantial landowner in the UK later this year when loans by developers move into the toxic loans agency. It is likely to enforce security on some developers, although this will depend on their business plans.