Property administrators know how to charge

EY administrators to a Belfast property company that owes £4 million to Cerberus – which acquired the debt through Nama’s Project Eagle portfolio – recently filed a detailed report setting out the company’s financial position and, interestingly, the administrators’ sizeable fees.

AD Enterprises (Northern Ireland), which once listed former Nama advisory board member Frank Cushnahan among its directors, owns the Lyndon Court development in Belfast. Cerberus were appointed administrators in March. Developer Garret Graham is fighting the appointment.

The administrators’ report shows that the building has a book value of £2.8 million, but it is estimated that only about £1 million is realisable.

Cerberus, named after The Hound of Hell, is owed almost £4.1 million. But going by the 70 per cent-plus average discount it paid for the Eagle loans, it should get its money back.

There are other creditors – of £2 million – who will probably get nothing. The administrators will get paid, however. EY is charging £380 an hour for partners and £350 for directors, who put in 12 hours between them in the first six weeks.

Assistant directors put in 7½ hours at £280 an hour, while EY senior executives clocked up 35 hours at £200 a pop.