|The site of the former Irish Glass Bottle plant, Ringsend, Dublin (within red contours). It was purchased at the peak of the boom in 2006 for €412 million, by a consortium led by developer Bernard McNamara. In the same year, Ireland's biggest bank AIB, sold part of its Dublin headquarters, the Bank Centre, to developer Seán Dunne.
The loans associated with the
purchase of the former manufacturing plant site of the Irish Glass Bottle
Company, at Ringsend, South Dublin, which was sold for €412m in 2006, the craziest year of the Irish
property bubble, have been transferred to NAMA.
The loans for the site, part of which was a municipal dump, are now the
responsibility of the State's toxic property loans agency, the National Assets
Management Agency. Becbay, the consortium that
included developers Bernard McNamara, Derek Quinlan, the State's Dublin
Docklands Development Authority (DDDA) and wealthy investors arranged by Davy
Stockbrokers, have been asked to submit a business plan before the end of this
month. However, the members of the consortium are at war and there is no
prospect of any practical plan being put forward.
The Labour Party’s spokeswoman on finance, Joan Burton,
submitted questions in the Dáil to Minister for the Environment
John Gormley and he has replied that NAMA has requested Becbay to
submit a detailed business plan in relation to its outstanding
debts by end July.
Gormley said a €288m loan to Becbay was
provided jointly by Anglo Irish Bank and AIB. “It is a
non-recourse loan largely secured against the land, with the
exception of €111.9m that is secured by guarantees of the three
shareholders in proportion to their respective shareholdings.”
He said the DDDA’s liability arising from the deal at the end
of 2009 involved a principal guarantee on its 26 per cent share
of the loans, totalling €29.1m and €5m interest that accrued on
its share of the loans for 2009. “This leaves a current
liability of some €34.1m, although interest continues to accrue
at a rate of €5m per annum until such time as the loan is
In Becbay's 2008 accounts it wrote off €452.8m
and the Ringsend site, which is the company’s
sole asset, was given a valuation of €50m.
is unclear as to the terms on which NAMA may
continue to finance the working capital
requirements of the company in the future,” the
directors said in their statement with the
Bernard McNamara who has admitted he's broke,
is suing the DDDA in relation to the deal.
Two Anglo Irish Bank directors including Seán FitzPatrick,
sat on the board of the State agency when it agreed to
participate in the purchase, from another State entity.
One man made a huge killing from the 2006 transaction,
apparently prompted by a minister who announced plans in 2005 to
close a property lease loophole:
Finfacts article Nov 2009:
Irish Glass Bottle Site: How the State purchased property it