Independent TD paid €4m for site in capital now worth just €350k

A site in Dublin that Independent TD Mick Wallace paid €4m for is now worth only €350,000.

That is according to new documentation lodged with the Companies Office that show that a string of Mr Wallace’s former properties have plummeted in value.

The receiver’s extract, lodged by receiver Gerard McInerney of McInerney Saunders on behalf of AIB, puts a combined value of €2.57m on the properties.

During the property boom, it is understood the properties would have realised €8.5m, while at its peak, Mr Wallace’s construction business was worth €80m.

Mr Wallace borrowed €4m for a site at Moeran Rd, Walkinstown, which has planning permission for 28 units. It is now worth €350,000.

Last September, AIB seized a number of properties from his M&J Wallace construction firm over what are understood to be millions in unpaid loans.

The haul included shops and offices in the Quartière Bloom, Mr Wallace’s signature, Italian-style development in Dublin city centre.

Mr Wallace not only built the units, but set up his own café, restaurant, and shops in premises on the site to further his project of creating an authentic Italian atmosphere.

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

The documents lodged with the Companies Office show that apartments 1, 2, 5, and 6 at 43 East Essex St in Temple Bar in Dublin were valued at €757,500 on Sept 25.

Their former value topped €2.5m.

Two commercial units at No 3 and 6, Quartière Bloom, Lower Ormond Quay, valued at €520,000 and it is understood their former value would have been around €1m.

Two office units on the 2nd floor, Block B, Quartière Bloom, previously valued at €1m, are worth €260,000. Elsewhere, 37 North Lotts is valued at €690,000.

No sales of the properties occurred in the period Sept 25 last to Mar 24, 2013, under review.

The properties achieved a rental income of €53,130 in the period.

In 2011, ACC Bank appointed its own receivers to a number of other Wallace properties.

Receiver Declan Taite valued the ACC assets at €4m last year.

AIB was able to appoint its own receivers because it already had charges, or mortgages, over Wallace properties at the five locations in Dublin.