Wallace receivership costs hit €464k

The costs associated with the receivership of flagship assets formerly owned by independent TD, Mick Wallace’s main construction firm, M&J Wallace Ltd, now top €464,000, figures show

The €464,106 costs resulted in a surplus of €185,726 at the end of the latest period covered by the receiver, Declan Taite of RSM Farrell Grant Sparks.

The largest cost to the receivership to date has been a bank/Nama cash sweep totalling €150,000 while professional fees are €105,477.

The surplus arises from Mr Taite bringing in €628,609 in rent from the properties between May 2011 and November 16 last.

In May 2011, ACC Bank appointed Mr Taite to three of Mr Wallace’s main property assets.

These relate to properties at the Italian Quarter on Dublin’s Ormond Quay along with an apartment complex near Croke Park and development land in Rathgar.

According to the receiver’s extract lodged with the Companies Office, it states that the 11 residential apartments and nine commercial units located in Dublin 1 have an estimated value of €3m. The documentation shows the firm also owns a development site with planning permission at Rathgar Dublin 6 with an estimated value of €1m.

ACC has as yet no definite strategy in relation to the sale of the assets.

This is in contrast to the approach taken by AIB that recently instructed receiver, Gerry McInerney of McInerney & Saunders Accountants to place on the market a separate lot of assets formerly owned by Mr Wallace.

The property that forms part of the Italian Quarter located on Ormond Quay Lower overlooking the River Liffey comprises of a successful Wine Bar Restaurant, a cafe and two office units. The property has a guide price of €875,000 and according to director with Hooke & McDonald, Enda Moore, he is in advanced negotiations for the sale of the property.

The state-owned AIB has already incurred a major loss on €4m it lent to Deputy Wallace to purchase a site on Morean Rd, Walkinstown, D12 that last year sold for a knockdown €510,000.

Mr Wallace has previously said he owes €40m to various banks.

In May 2011, Mr Wallace said that ACC told him that he owed the bank €18.4m.