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NAMA to spend over €10m on completion of apartment block

NAMA is stumping up more than €10m to complete a Dublin apartment block that's been half-built since the start of the property crash, the Irish Independent has learned.

Sources last night confirmed that the apartments would be rented out by the toxic loan agency once the work has been completed.

The building is at the Beacon South development in south Dublin and is part of a much bigger complex that includes hundreds of already finished apartments, a large Dunnes Stores outlet, a gym and Imaginosity, an interactive children's museum.

The property now ear-marked for completion is an unfinished concrete skeleton, wrapped in a massive "shroud" covered with giant pictures in the style of a finished property.

The property is part of the Landmark Enterprises property empire built up by developers Paddy Shovlin with brothers Patrick and Anthony Fitzpatrick. The company was taken into receivership in 2010 with debts of €280m.

Bank of Ireland appointed receiver Simon Coyle of Mazars to take charge of the site, along with surrounding retail and residential buildings that were already complete.

The loans have since transferred to NAMA, and sources last night said NAMA is planning to invest in excess of €10m to complete the development.

Yesterday receiver Mr Coyle applied to Dun Laoghaire-Rathdown county council for planning permission in order to move ahead with the scheme.

New planning permission is required because of proposed changes to the original scheme, including a higher proportion of apartments and shelving plans for a creche, community spaces and restaurants.

Last night Mr Coyle said a decision had been made to develop the property rather than sell it as a shell.

"We looked at several alternatives, but building it ourselves is the best way to maximise value," he said.

There is currently no plan to sell the apartments once development is complete, he said. Instead the intention is to rent out the apartments and manage the estate on behalf of NAMA.

In July last year NAMA sold 58 apartments in the same development to the Cluid Housing Association in a €10.3m transaction. The Beacon South development includes a mix of retail units, parking and offices, as well as apartment blocks.

Irish Independent