Receivers appointed by Nama to developer
The agency finally moved on Cork-based Joe O’Donovan’s firms, which market sources said could have debts of between €300m and €500m, after agreed repayments were not received by a certain deadline.
A spokesperson for Nama declined to comment.
The High Court approved the appointment of Limerick-based McKeogh Gallagher Ryan accountants as receivers to up to 12 of Mr O’Donovan’s companies.
Among them are Padlake Ltd, Alvonway Investments, and Footwear Distributors, which runs a landmark shoe shop on Cork’s Grand Parade.
Mr O’Donovan, who owns the Wilton Shopping Centre in Cork, did not answer his phone or return calls yesterday. It is believed he is in Moldova.
The speculator bought a lot, but developed little during the boom years.
Backed by the former Anglo Irish, he splurged tens of millions on property investments in Ireland, mostly in Cork City, and was linked to property speculation in England and Scandinavia.
In his late 40s, he kept a low profile and actively avoided the spotlight, making several large acquisitions under the radar, and never commenting publicly.
He hit the headlines in 2004 when he spearheaded, in partnership with Howard Holdings, the purchase of Wilton Shopping Centre for €124m. He owned 60% but went on to buy out Howard’s 40% share for an undisclosed sum.
He became embroiled in controversy in 2006 when 172 people working at the centre’s Roches Stores outlet lost their jobs.
Roches had agreed a deal with Marks and Spencer to take over the lease on the outlet for the same rental price, and to take on the former Roches staff.
But after a row over the rental value of retail space, the deal collapsed and the staff lost their jobs.
Another row flared in 2010 when four of the centre’s longest established traders were hit with rent hikes of 40% to 60%.
Carphone Warehouse chief, Stephen Mackarel, became the public face of the revolt against upward-only rent reviews and threatened to withhold rent.
Relations between Mr O’Donovan and traders never recovered.
During the early to mid 2000s, he spent up to €50m amassing a strategic block of real estate around the city’s former Capitol cinema site.
He spent up to €6m on one nearby pub, and a further €8m on another, to secure the land bank, earmarked for a retail and mixed use development.
But when An Bord Pleanála shot the plans down after an appeal, the project stalled. The former cinema site is now regarded as one of the city’s worst dereliction blackspots.
He also bought the former John Barleycorn premises in Glanmire and developed a small mixed-use retail complex in Passage West.
As the economy slowed, he began work developing Stapleton House on Oliver Plunkett St for retail and office space. The vacant building was at the centre of a stand-off in early 2012 when activists gained access to the building.
But they agreed to leave after Padlake sought an injunction seeking their eviction.
