Mulryan to mothball Bray project until recovery
Developer Sean Mulryan has decided to mothball a major mixed-use development in Bray, Co Wicklow, until economic conditions improve, according to accounts for one of his companies. The development at Florentine in Bray was due to begin in June 2008, but the difficulties in the property market and among the banks are believed to have caused the timetable to slip again. The scheme has planning permission.
Mr Mulryan's loans were in the first tranche of loans moved into NAMA and negotiations with the wider Ballymore group are ongoing at present.
Florentine Property Limited, a wholly-owned subsidiary of Mulryan's Ballymore, has a €21.1m deficit in shareholder's funds, mainly due to bank loans of more than €20m.
The properties owned at Bray actually got valued up from €10.2m to €11.1m in the period to March 2009. "The valuation of the company's development properties . . . is subject to uncertainty in light of current market conditions where property assets are relatively illiquid,'' state the accounts.
Mr Mulryan, who owns a large UK portfolio, is believed to have the best chance of getting approval from NAMA for his future plans. The Florentine company may need to hold an extraordinary general meeting (egm) because it has an excess of liabilities over assets.
The accounts disclose that a consultancy agreement dated August 26, 2005, will mean the company having to pay €2.5m in fees if the developments are brought to completion.
The identity of the person or firm getting the fees is not disclosed.