Nama pursues property developer in Canada

 

THE NATIONAL Asset Management Agency (Nama) has taken legal action against developer Ray Grehan in Canada to reverse the transfer of a €1.2 million property in Toronto which took place eight days after it won a €269.6 million judgment against him in Ireland.

This is the first time that Nama has taken legal proceedings outside Ireland or the UK against an Irish property developer in a bid to recover debts for the State.

Nama claimed in a case taken last Monday that Mr Grehan purchased “a condominium suite and related units” at The Residences at the Ritz Carlton in Toronto for CAN$1.6 million (€1.2 million).

The Ontario Superior Court of Justice was told that Mr Grehan bought the property on August 16th, 2011 and transferred it to a firm called 2295661 Ontario Inc on November 17th but that no money changed hands in the transfer.

Nama claims that the transfer took place when Mr Grehan was insolvent and eight days after the Irish High Court ordered him to repay €269.6 million to the agency in one of the largest personal debt judgments in the Irish courts.

Nama claimed that the transfer was “made with the intent to defeat, hinder, delay or defraud creditors of Grehan”. The agency argued that the transfer “ought to be declared null and void, and set aside as a fraudulent conveyance”.

The legal action is being taken by National Asset Loan Management, the Nama subsidiary which deals directly with developers, against Mr Grehan and the company, 2295661 Ontario Inc.

Mr Grehan’s addresses on the Canadian lawsuit are listed at Maynooth Business Campus in Co Kildare, an apartment in Shoreditch, London and the property at the The Ritz Carlton Hotel in Toronto.

One of the most prolific developers during the boom, Mr Grehan lost control of his businesses in Ireland and the UK earlier this year after Nama appointed receivers to his companies.