Havenview Investments, the development vehicle for the Irish property interests of Real Estate Opportunities, moved into the black last year with a pre-tax profit of €827,033.
This compares to a loss of €2.6 million for 2002, with turnover climbing by 30.7 per cent to €5.6 million.
The bulk of the increase came from higher rents drawn from Havenview's office properties, which brought in €4.7 million last year, up from €2.7 million in 2002.
Havenview's portfolio, which includes the Central Park development in Leopardstown and Ballymun Shopping Centre, was valued at €170.2 million .
Havenview's move from a pre-tax loss into profit over the year was due in large part to the size of interest payments made by the firm in 2002.
The company, which is half-owned by REO and half by Treasury Holdings, made interest payments of €7 million in 2002, compared to €4.2 million in 2003.
Havenview made interest payments of €5.7 million to REO and subsidiaries for loans in 2003, down from €7.4 million in 2002. Havenview has taken out a €39 million loan from Real Estate Opportunities Holdings, and a €17 million loan from REO.
These loans have been the subject of complaints made by Mr Guy Naggar, chairman of REO investor Dawnay Day.
He is concerned about what he sees as the dominant role in REO played by Treasury Holdings, which is controlled by Mr Johnny Ronan and Mr Richard Barrett. Treasury owns 35.5 per cent of REO.
Neither Mr Ronan nor Mr Barrett took a wage from Havenview in 2003. However, Havenview paid project management, development and investment management fees of almost €2.5 million to a Treasury Holdings company in 2003.
The comparable charge in 2002 was €250,860.
Separate accounts filed recently at the Companies Office show that Treasury Holdings was harbouring an after-tax loss of €61 million at the end of 2002, up from €16.5 million a year earlier.
