NAMA 'makes valuations tricky'
DEVELOPER Bernard McNamara has claimed that the "unknown impact'' of NAMA makes it impossible to establish what property assets are currently worth in the Irish market.
Mr McNamara, who said in a recent RTE radio interview that he was effectively "broke'', is valuing most of his assets at cost, because loans have yet to move from banks to the National Asset Management Agency and because of a lack of transactions taking place.
Mr McNamara and public relations executive James Morrissey are the shareholders in a company called Varleigh, which has property assets valued at €59.6m and bank loans of €63m.
NAMA, general worldwide economic uncertainty and the lack of transactions have made it "impossible to establish any meaningful or appropriate valuations for property-related assets'', state the accounts to the year ended March 2009.
The two directors claim their bank will continue to provide support to the company, even though loans are listed as falling due within one year. The company, in the meantime, is leasing its property in Dublin 24 while it considers its future options for developing the asset.
Meanwhile, it has emerged that Bernard McNamara's construction firm Michael McNamara & Company is protected from court proceedings involving the builder and investor in the controversial €412m glass bottle site at Ringsend because one lender already has a charge on the company, the Irish Independent has learned. Bank of Ireland has a mortgage on the shares and assets of the firm.
The Irish Independent has also learned that while Mr McNamara is the ultimate shareholder in Michael McNamara & Co through an Irish- registered firm Adenway, because of the mortgages, the assets of the company cannot be used for liabilities of the builder in a personal capacity.
When Mr McNamara had a judgement of €62.5m registered against him last month, because of his investment in the glass bottle site, he stated that Michael McNamara & Company was "ring-fenced" from the court proceedings.
However, how the company was protected was unclear until now. Shares in Adenway, the ultimate parent firm in Michael McNamara & Company chain of ownership, are 90pc held by Mr McNamara, while other minority shareholders Michael O'Brien and Christopher Hirst own 5pc each. There are 11,100 shares in the firm of which Mr McNamara owns 9,900.
Because the firm is unlimited, no financial details are readily available.