Pre-tax losses at the international arm of Sean Mulryan’s Ballymore Developments increased by 51% last year to €222.1m.
The chief factor behind the loss at Ballymore International Developments Ltd (BIDL) was a writedown of €140.6m on its largest core property assets last year after a write-down of €66.6m in 2011.
Revenues — consisting of residential sales, rent and hotel income from continental Europe — declined 13% to €58.6m.
In a statement attached to the accounts, chairman Sean Mulryan concedes “the directors of the group believe that the ongoing lack of large-scale development financing means it is unlikely that the group’s core assets will be developed to completion by BIDL in the short term”.
The accounts show that BIDL had loans to banks and Nama totalling €279m as of the end of last December.
In his statement, Mr Mulryan said Nama constitutes 52% of BIDL’s bank debt. The Co Roscommon man said that “Nama is a major stakeholder in BIDL, has a significant role in its operation and will have a significant role in determining its future.”
He revealed “Nama continues to be supportive of BIDL through loan extensions, interest roll-up and provision of working capital finance.
“In turn, BIDL has committed to a challenging debt reduction programme which is intended to see its Nama loans repaid by the end of 2016.”
The accounts show the “interest rolled up into loan facilities” totalled €40.7m at the end of last year.
On the impairments, Mr Mulryan said: “The principal reason for the large impairment of the group’s development properties is the directors’ change of assumption with regard to the ultimate development of the properties.”
Mr Mulryan said thatthe group “is focused on securing the planning permission at Prague and Berlin in order that it can negotiate the best possible deal in any future refinancing of these assets”.
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