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Receiver named for Elm Park by NAMA

NAMA has moved to appoint a receiver to Bernard McNamara's flagship Radora Developments after several weeks of negotiations with the developer.

Radora owns the giant Elm Park prime office development in Dublin 4.

The receiver appointed has not been announced yet, but is likely to be Farrell Grant Sparks. It is already acting as a receiver to Michael McNamara, the construction firm.

A sale of the Elm Park development would be one of the largest sell-offs in south Dublin for some time and could impact on prices for commercial property throughout the area. Friends First and ACC were also mentioned in recent days as likely to apply for a receiver to the Radora company.

A number of other big developers who owe millions to the banks could face the same fate in the coming months.

Legal actions

The legal actions come as NAMA works its way through business plans submitted by the big property developers to figure out which parts of their operations may be viable and which should be shut down.

The agency has an 80-strong team -- including insolvency experts -- that has been working with the cash-strapped developers to work out how it can get them to repay the maximum amount of money owed.

The writing was on the wall for Michael McNamara Construction over recent weeks when NAMA rejected its business plan and went to court to have a receiver appointed.

Subsequently, Farrell Grant Sparks was appointed to take control of the business. It shut down the company's sites and laid off half of its 110 staff. The receiver is now putting the company's assets on the market.

In recent months, NAMA has been taking decisions on asset disposals and other debt repayments for those who are awaiting final approval on how they should proceed.

Already, properties in Ireland and the UK valued at more than €500m are being put on the market and more are expected to be released before the end of this year.

Irish Independent