Docklands plan could prove Carroll's undoing

BACKGROUND:DEVELOPER LIAM Carroll's ambitions for Dublin's north docklands could prove to be the undoing of at least part of his property empire.

The companies at the centre of yesterday’s Supreme Court hearing are involved in developments on a series of sites around Upper Sherriff Street, East Wall and East Road on the north side of the capital’s traditional port area.

At the centre of it is Castleforbes Square, a mixed development mainly made up of apartments – which originally made Mr Carroll his money – along with commercial units for shops and other services.

Apartments in the development have been sold, and its agents are continuing to advertise one- to three-bedroom units there. Recently, outgoing AIB chief executive Eugene Sheehy estimated that there are 16,000 unsold apartments in the capital.

Five companies involved in yesterday’s proceedings, Vantive, Carragh Enterprises, Parlez International, Peyton Developments and Villeer Developments, owe money to a number of banks and the debts are secured on properties around this area.

Documents lodged with the Companies’ Registration Office show that a number of banks, including Dutch-owned ACC, hold mortgages over part of these properties, mainly at the East Road/ Sherriff Street end.

ACC, owed €136 million by these companies, has been seeking the repayment of its loans, a move which originally prompted the firms to seek the High Court’s protection.

While the group’s other banks, including AIB, KBC and Anglo Irish, supported the companies’ bid to be placed in examinership, ACC opposed the move on the grounds that this would prejudice its interests.

Castleforbes is not the limit of Mr Carroll’s interests in the area. Through another development firm, North Quay Investments, which is not involved in the examinership proceedings, he is building offices nearby, close to the site of the National Conference Centre on Spencer Dock. One unfinished office block was earmarked as a new headquarters for Anglo Irish Bank, which had to be nationalised at the end of January in order to guarantee its survival.

Mr Carroll’s companies also believe that the docklands will provide them with a way out of their current problems. Lawyers acting for the group argued yesterday that sales of apartments in the East Road/Sherriff Street area would be crucial to returning those businesses back to profit.