A property company controlled by Galway developer John Lally has slashed a further €47m from the value of a site it acquired in south Dublin in 2006 for over €100m -- but directors of the firm still believe it will be worth significantly more when planning permission is obtained.
Brackville Holdings is part of the Lalco group and in 2006 it acquired a five-acre site that was formerly occupied by a company called FAAC Electronics in Sandyford.
Brackville raised as much as €25m in equity from private clients of Goodbody Stockbrokers to finance the acquisition and planned development of the site -- the value of which has now effectively been written off.
Accounts just lodged for Brackville, whose loans have been transferred to the National Asset Management Agency, show that the company incurred a €47m loss in the 12 months to the end of June 2009.
That brought its net liability position to €127.1m at the end of the period. Brackville had intended to construct almost 600 apartments, a 189-bedroom hotel and extensive office and retail space on the site.
"The outlook for the property market has materially declined since the site was acquired and the value of the asset has declined," note accounts for Brackville.
"In addition, an effective moratorium on the granting of planning was introduced in the Dun Laoghaire Rathdown development area during the period.
"As well as increasing the planning rise associated with the site, the new planning regime is likely to reduce the scale of the development to be permitted on the site with a consequent reduction in valuation of the site."
Previous writedowns on the site's value have brought the total impairment figure to almost €127m.
In 2008, a unit of Irish Life sued Lalco's parent firm for its failure to complete a €74m purchase of a Dublin site in Sandyford for which a €15m deposit had been paid.
Mr Lally also emerged in 2006 as having paid €25m to Renata Coleman for Humewood Castle in Co Wicklow.