Grehan's trophy sites are not for sale - yet

TWO HIGHLY expensive development sites in Ballsbridge and Howth bought by Ray Grehan’s company, Glenkerrin Group, at the peak of the property market, are not now expected to be offered for sale for the foreseeable future because of the likelihood that they would only make a fraction of their original cost.

However, receivers Paul McCann and Michael McAteer of Grant Thornton have appointed estate agent Hooke & MacDonald to take over the day-to-day management of Glenkerrin’s extensive Irish portfolio which includes several major residential schemes, Maynooth Business Campus and development sites in Rathmines and Ashford, as well as Ballsbridge and Howth.

David Cantwell of Hooke & MacDonald said yesterday that along with Grant Thornton and Nama it had devised an asset management and disposal strategy which would make the different properties available for purchase, either individually or collectively, on a phased basis.

An independent valuer has told The Irish Timesthat the former UCD veterinary college site of 2.02 acres in Ballsbridge, Dublin 4 – bought by Grehan in November 2005 for the record price of €171.5 million, or almost €84 million per acre – would be unlikely to fetch much more than €20 million in today's extremely difficult market. That's a fall in value of some 88 per cent.

Opposite the vet site on Pembroke Road, HT Meagher O’Reilly is seeking €5 million for the income producing (€376,000) Audi Centre on just under half an acre which will be redeveloped.

The independent valuer has calculated that the 6.58-acre site along the coast in Howth – acquired in two lots in 2007 for €62 million – would be expected to make over €10 million if it was put on the market at this stage. That’s a fall of around 84 per cent.

The unprecedented collapse in development land prices in Dublin, as well as in provincial cities and towns, follows the repricing of all housing stock, offices, retail and other commercial buildings. There is little incentive for developers to resume construction activity while values are on the floor. The absence of bank lending has also exacerbated the downturn.

Nama has confirmed buying 3,518 individual loans at a discount of 52.3 per cent. Most of these probably related to completed buildings. The bad bank has not disclosed what discounts it applied to the Ballsbridge and Howth sites.

The exceptional prices paid by Ray Grehan and his brother Danny for the two high profile development sites are frequently cited as good examples of the excesses of the property boom. Glenkerrin Homes has had debts of €650 million transferred to Nama.

City planners have granted planning permission for a mixed-use scheme on the former veterinary college site. It is due to include 86 apartments and penthouses, 15,600sq m (167,917sq ft) of offices, 2,600sq m (27,986sq ft) of retail and a leisure centre extending to 2,340sq m (25,188sq ft).

In Howth, architect Duignan Dooley is awaiting a decision on a planning application for around 250 apartments as well as a mixture of shopping, offices, leisure and a community centre for the Glenkerrin site.

Hooke & MacDonald is expected to seek a buyer for a site in Ashford, Co Wicklow, with planning consent for 143 houses and a crèche. Also likely to go on the block immediately is the former Rowan’s Bakery off Rathmines Road which would suit a small residential or commercial scheme. The agency is also to market a number of completed office and warehouse units in Maynooth Business Campus where over 100 companies already employ around 2,500 workers.

The Glenkerrin receivers are also anxious to wrap up construction and sales at three substantial residential developments: The Grange on the Stillorgan Road; St Edmunds in Palmerstown; and Ballintyre in Ballinteer.

More than 30 completed apartments are ready for sale in The Grange where Nama is expected to provide funding to complete a crescent-shaped block which is developed up to roof level and accommodates 129 homes. There is also planning permission for a further 80 apartments in a separate block as well as a substantial nursing home.

At St Edmunds, there is planning approval for another 95 houses, about 200 apartments and a neighbourhood centre. In Ballintyre, the only house remaining for sale is the newly restored Ballintyre House which is expected to fetch over €1 million.