Properties from split-off Siac division to be sold

Properties formerly owned by building and engineering group Siac are to be sold after one of its banks took control of three companies split from the group earlier this year.

Bank of Scotland has appointed receivers Paul McCann and Stephen Tennant of Grant Thornton to three property-holding firms that formed part of Siac before its rescue from examinership in February by long-standing shareholders, the Feighery family, its directors and two other businesses.

The move does not affect the operating company, Siac Construction, which emerged from examinership in February after the Supreme Court threw out a last

-minute challenge to a rescue plan devised by Mr McCann’s and Mr Tennant’s colleague, Michael McAteer, appointed examiner to the group in October.

: Bentoba Property Rentals, MC Eco Park and Rotago Baldonnell, which owned property in Dublin, Meath and Laois, that were owned or developed by Siac and financed by the lender seven years ago.

Bank of Scotland has also recruited Green Property Management to oversee the sale. All the properties are the subject of mortgages given by the bank to various Siac group companies in February 2007.

Under the High Court approved rescue plan, Siac's property interests and contracting companies were split in two. This allowed the operating businesses, controlled by Siac Holdings Ireland and including Siac Construction, to form a new debt-free group.

Assets valued at €37m
The second division, headed by Siac Holdings Ltd, took on the

€38 million secured property debt. Assets are valued at €37 million. This was done with the support of three banks involved: KBC Bank, Bank of Ireland and Bank of Scotland.

Investors put up €10.5 million to fund the scheme and now own the contracting business.