Loss of €32m at property company

THE main property company of one of the country’s best-known developers and hoteliers, Jerry O’Reilly, incurred a loss of €32 million in 2009 as a result of loan write-offs and property write-downs.

Accounts just filed with the Companies Office show that Jeremiah O’Reilly & Associates incurred a loss of €32.1m in the 12 months to the end of December 2009.

A note to the accounts explains that the company incurred the loss having impaired the value of property-related assets and having written off parent and related company loans.

At the end of 2009, the company had net liabilities totalling €38m.

The loss in 2009 followed the company recording a loss of €17.6m in 2008.

Kerry native Mr O’Reilly is a business partner of developer Bernard McNamara in a number of ventures, including the redeveloped five-star Shelbourne Hotel in Dublin and the Radisson Blu Hotel in Galway.

The losses incurred by Jeremiah O’Reilly & Associates were the largest sustained in the O’Reilly group in 2009. The loss by the company arose chiefly from the directors of Jeremiah O’Reilly & Associates writing off in full €32.7m it was owed by parent company, Gamine Trading Ltd.

A note states that the loan was written off because “due to the decline in the property market, the collectability of the inter-company debtor remains uncertain and the directors consider it prudent to write off the balance in full”.

The company had bank loans totalling €14.6m at the end of 2009 and a note states that “Jeremiah O’Reilly has given personal guarantees in respect of company bank loans”.

The company also owed its directors, including Mr O’Reilly, €25.6m at the end of 2009. The firm recorded a property write -down on a 24-acre site in Co Meath from €3.4m to €500,000 in 2009.

Accounts for parent company Gamine Trading outline profits and losses of the O’Reilly group companies, including a €5.9m profit for O’Reilly’s Kilkenny Ormonde Ltd and a 1m loss for Absolute Hotel, Limerick.

However, Gamine Trading had not prepared consolidated financial statements, as a note explains that the information necessary cannot be obtained without disproportionate expense and undue delay.

The company acknowledges that financial reporting standards state that this cannot justify excluding from consolidation subsidiary undertakings that are individually or collectively material in the context of the group.

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