Nama to fast-track challenge by developer in €457m loans case

 

THE NATIONAL Asset Management Agency has moved to fast-track a legal challenge by developer David Daly and his children to prevent the agency demanding repayment of their €457 million loans with AIB and challenging its appointment of receivers to certain properties here and in Britain.

Receivers appointed by Nama over various properties of the Dalys remain in place and are receiving rents, Paul Sreenan SC, for the agency, said yesterday.

There were no immediate plans to put properties on the market and any change in that position would be notified to the Dalys at 24 hours’ notice, he added.

The properties involved include Airside Business Park in Swords, Dublin and several properties at St Stephen’s Green, Dublin, and Pembroke Road, Dublin. The British properties include the Louis Vuitton building at Bond Street, London.

In an affidavit, Mr Daly has said the Irish properties were recently valued by Savills at €158 million while the British properties were given a conservative “red book” valuation by Savills of about £269 million (including £190-195 million for the Louis Vuitton building). He had been approached by a number of parties interested in acquiring all or part of the British property assets, including the president of Louis Vuitton, Bernard Arnault, he said.

Sale of the UK assets by the receivers was also likely to have adverse capital gains tax (CGT)consequences for the plaintiffs and to trigger a significant capital gain of up to €40 million, he said.

The plaintiffs had intended, acting on advice from KPMG, to put a structure in place to set off gains relating to the UK assets against losses in relation to the Irish assets which would have the effect of eliminating CGT liability, Mr Daly added.

Mr Justice Peter Kelly agreed to transfer the proceedings to the Commercial Court, which fast-tracks business disputes. The proceedings have been brought by Mr Daly, his daughter Joanne and son Paul, against Nama, the State, AIB and the receivers.