LIAM CARROLL’S three property development groups – Zoe, Dunloe and Orthanc – proposed selling €701 million worth of properties under a three-year business plan devised last December, the High Court has been told.
KPMG, whose independent accountant’s report supports the survival plan, said in a supplemental report planned disposals by the groups included commercial and residential properties and financial investments worth €400 million. Zoe would sell three commercial development sites over the duration of the plan. One site would be sold for €2 million in 2010, while two sites would be sold for €83.75 million during 2011.
The group has said its management is attempting to increase the value of sites through “planning gains” and sell them to repay €136 million owing to ACCBank, which is opposing an application by seven Zoe Group companies for a court-appointed examiner.
The group expects to spend €20.5 million on work-in-progress projects in 2009 and €76.2 million in 2010, including €18.1 million on a building in Cherrywood, south Dublin, and €38.9 million on the new Anglo Irish Bank headquarters in the north Dublin docklands.
A further €45.2 million is projected to be spent in the first seven months of 2011, including €12 million on the Anglo Irish building, €13.5 million on the Parkway shopping centre in Limerick and €10.6 million on a residential building in Cherrywood on behalf of Dunloe.
The court was told a loan facility of €605 million was arranged for Cherrywood Business Park, a commercial site, with Bank of Scotland (Ireland), AIB and National Irish Bank. Some €456.7 million was drawn down at July 31st, 2009. Development is being undertaken by Royceton, one of the seven companies seeking protection, and Danninger, the main development company in the Zoe Group, on behalf of Dunloe.
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