Sunday, 1 February 2009

Value of Dunne’s Ballsbridge site may now be less than €100 million

The Jury’s Doyle hotel site in Ballsbridge in Dublin, which property developer Sean Dunne assembled at a cost of €379 million, is now worth less than €100 million, auctioneers have estimated.

Last Friday, Dunne’s company, Mountbrook Homes, was refused planning permission for a high-rise development on the site, which would have included a 37-storey tower. In a statement, the firm said it was ‘‘very disappointed’’ with the decision by An Bord Pleanala and would consider its ruling before submitting a revised plan for the site.

Ulster Bank provided Dunne with most of the financing for the site, believed to be in the region of €270 million, but it is understood the lender syndicated around half of this to other banks. However, experienced auctioneers in some of the country’s largest estate agents, said that the site was now worth between €80 million and €100 million, though exact valuations are difficult in today’s market.

‘‘It is all about the exit values,” said one senior auctioneer, who did not wish to be named. ‘‘If you take the view that new homes [prices] are now back 40 per cent on what they were two years ago, and are predicted to drop another 10 per cent in the next six to nine months, that is a 50 per cent drop on any investment.

Land values drop further than housing unit values, so these are now back 70 to 75 per cent in this case.” Selling the site would also be very difficult in the current environment, according to Duncan Lyster, director of Irish and international investment at Lisney.

‘‘The number of buyers for a site like that - which is probably the best site in Dublin - would be very few. In terms of development of it . . . the climate for raising money is as bad as it’s ever been,” he said.

The Sunday Business Post understands that a wealthy Irish businessman expressed an interest in the site six months ago, but did not proceed because of the poor economic environment and global credit crunch. Informed sources also said that the Doyle family of hoteliers, who sold Dunne the site, ‘‘have no intention’’ of buying the site back.

Sunday Business Post

1 comment:

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SOLD! Anglo Irish Bank Hole In Ground Bought By Taxpayers for €450 Million.

The October 2008 guess is correct. Over the weekend patriot BIFFO was sent another bag of chips from Seanie who told patriot Brian to add the salt and vinegar. Seanie is safely outside the jurisdiction in South Africa, perhaps investigating BEE schemes and direct flights to Bolivia.

By nationalising Anglo Irish Bank the taxpayers have just bought a hole in the ground for €450,000,000. The former glass recycling site where 300 workers were fired is now worth perhaps €45 million, or less. The exact value is a secret and even if Anglo Irish Bank published a value who would believe them?

Is this Galway Tent directed bank-and-developer-rescue a legal theft of more than €400 million of taxpayer's cash?

The cross-contaminated(a) Dublin Developer's Autocracy (DDDA) is a co-investor in the site along with the Becbay group of property developers. The Dublin Developer's Autocracy also decides the planning permission and denied a conflict of interest, at a June 2008 statutory public event.

Anglo Irish Bank provided €288 million for the site (Did Mr Quinn invest €288 million in Anglo?). One of the developers is obliged to pay seventeen percent interest (17%) on money borrowed from someone. Perhaps to someone with an interest in Bolivian airlines.

The site has been excavated and is now literally a hole in the ground, possibly even below current sea level, yet somewhat higher than the scuttled Anglo Irish Bank.

(a) The site is in a contaminated Dublin City refuse dump situated Banana Republic style on Sandymount Strand and on the foreshore of Dublin Bay.