Monday, February 22, 2010

Where is the money gone? Development land values plummet!

From the Irish Times, a piece by Mary Carolan:

DEVELOPMENT LANDS in Athlone, Co Westmeath, valued in 2006 at €31 million have a current value of €600,000, Bank of Ireland told the Commercial Court yesterday in a dispute with a developer over unpaid loans.

The bank was rejecting arguments by Pearse Gately that the sale of these and other lands offered reasonable potential for the bank to recover €17.4 million from the developer under his guarantees of loans.

Mr Justice Peter Kelly said the €600,000 figure was “even more alarming” and put “into a cocked hat” the judge’s own view, from his experience in the Commercial Court in recent years, land values had fallen between 70-80 per cent.

John Hennessy, for B of I, said as well as obtaining the €600,000 valuation for the Athlone lands, the bank had also received a valuation of €4 million for development lands at Sallins, Co Kildare, previously with a peak value of some €17.5 million.

I wonder where the money is gone?

Posted via email from quirkeproperty's posterous

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