AIB set for big loss on €4m loan to Wallace

AIB is set for a major loss on the €4m it loaned Independent TD Mick Wallace to purchase a site in Dublin.

This follows the receiver to sites formerly owned Wallace’s M&J Wallace Ltd, Gerry McInerney, securing €510,000 from the sale of the site at Morean Rd, Walkinstown, in Dublin.

According to a receiver’s extract lodged by Mr McInerney with the Companies Office, the site sold on March 3 to O’Connor Cabins Ballisodare Ltd.

The price realised for the site was sharply up on the initial valuation of €350,000 after the State-owned bank appointed Mr McInerney as receiver to the property in September 2012.

However, it is 87% down on the €4m that Mr Wallace borrowed from AIB to pay for the site with planning for 28 units.

Mr McInerney, of Swords firm, McInerney Saunders, has also overseen the sale of an apartment that AIB seized as part of the receivership with €65,000 realised in a sale to a Shan Ti.

However, AIB will not receive the full €575,000 from the sales after the various receivership expenses have been taken into account.

The extract shows that marketing and legal fees connected with the two sales total €22,450.

The payments for the six-month receivership period, running from September 25, 2013, to March 24, including receiver fees of €11,070, total €90,209.

At its peak, Mr Wallace’s construction business was worth €80m.

Mr McInerney was also appointed receiver to apartments 1, 2, 5, and 6, at 43 East Essex St in Temple Bar in Dublin, and these are now valued at €1m.

Their former value topped €2.5m.

The filings also show two commercial units at No 3 and 6, Quartiere Bloom, Lower Ormond Quay, are valued at €520,000.

The receiver’s extract also shows two office units on the 2nd floor, Block B, Quartiere Bloom, Ormond Quay, valued at €300,000.

Wallace properties at Quartiere Bloom were put up for sale by Mr McInerney last month.

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

In 2012, the Wexford TD admitted deliberately under-declaring €1.4m of Vat paid to M&J Wallace.

Efforts to secure comment from Mr Wallace or Mr McInerney were yesterday unsuccessful.