| 7.6°C Dublin

NAMA facing 40pc loss on value of Grehans' loans

NAMA is facing recovering less than 60pc of the money lent by Irish banks to developers Ray and Danny Grehan for land and sites in the UK, an adminstrator's report discloses.

A group of Irish banks, including AIB, Bank of Ireland and Anglo Irish, lent £167m for the UK assets, but the administrators' report from Grant Thornton claims the sites are now worth only £97m (€110m).

Based on these figures, it would mean NAMA recovering less than 60pc of the original sum advanced.

But it is not known what NAMA paid for the loans, so it is possible it could break even or make a small profit. UK loans tended to take smaller discounts than Irish loans, sources said.

The report, filed in the UK, goes through valuations of various assets previously owned by the Grehans, trading as Glenkerrin UK.

A site at Island Point in the Isle of Dogs is valued at £20m and is current derelict.

Another site in Canary Wharf, Marsh Wall, is valued at £20m and is occupied by a pub.

The company's assets at Ealing Arcadia are worth £22.2m.

The final asset is at the Forge in London and will get offers of more than £35m, the administrators say.

The Grehans also own the Crowne Plaza hotel in Shoreditch, east London, but this asset is in their personal names and does not form part of the assets of the Glenkerrin company.

Business Newsletter

Read the leading stories from the world of business.

This field is required

The report also reveals that administrators are charging £390 per hour, with costs so far totalling £141,694, representing 364 hours.

Ray Grehan has expressed strong disappointment at the decision in April by NAMA to take action against him and his companies. He had signed a memorandum of understanding with the agency, but still faced enforcement action.

It was the first time NAMA had taken action against a developer with such an agreement -- a move which left many developers deeply concerned.

He hit the headlines in 2005 when he paid €171.5m for the two-acre former UCD veterinary college site.

This worked out at €85.75m an acre, the most paid by any developer for land in the city.

Most Watched