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Developers In Trouble


Mr Mephisto
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This may be old but I don't remember reading it on this site.

WJ Law

"He stressed that the company now in liquidation has, for 21 years, been a completely separate business to the housebuilding firm, W. J. Law Ltd, and other associated companies."

Both based at 171 Moira Road.

Wonder if they will finally lower Ballantine Garden Village prices instead of the ridiculous "SmartMove" Scheme

As I understand it the company that was wound up was a haulage company that had nothing to do with the housing company.

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  • 8 months later...
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  • 1 month later...

Anecdotally I know. But I have friends working in the big banks here who tell me that judging by the amount of commercial property getting valued in Belfast at the beginning of the year it is not only development land. Several high profile building among them I hear.

I genuinely believe that once the cuts come here, along with the realisation that we don’t really produce anything (apart from the around 10 big companies that work here) there will need to be a mass sell off of these development. Yesterdays “luxury apartments” will be tomorrows ghettos.

http://news.bbc.co.uk/1/hi/northern_ireland/10290455.stm

rock on!

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These guys are/were big players, although like virtually all of the major commerical property developers in Norn Iron, most people will have never heard of them (very secretive type). As far as I am aware they own the Linen Green at Moygashel. NAMA hasn't even gotten near these sort, yet... ;)

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These guys are/were big players, although like virtually all of the major commerical property developers in Norn Iron, most people will have never heard of them (very secretive type). As far as I am aware they own the Linen Green at Moygashel. NAMA hasn't even gotten near these sort, yet... ;)

here is there site

http://www.jermongroup.com/index.aspx

too big too quick?

rock on!

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Don't know if this is the correct thread for this, but anyway!

'No value' in Taggart Homes helicopter

Mr Taggart said that the aircraft had been in perfect working condition when it was given to a third party in 2008.

He said he had given it to brokers, who were going to sell it on his behalf, and had no knowledge of any problem it had subsequently acquired.

A key problem was that the engines were damaged and the bank will have to pay for the repairs.

Sounds like someone wanted to put the helicopter beyond use when Taggart Homes went into administration.

Perhaps a realisation that all outstanding invoices in relation to the helicopter were not going to be paid / honoured. This could get messy if a third party is involved. I wonder if the bank have spoken to the maintenance engineers who would have known the full service history? I have to say I smell a rat here.

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I have a growing suspicion that a great many developers are only trading because of the grace of the banks. They have lots of stock sitting on there books they refuse to off load at market prices. I don’t think banks are letting them sell the stock because this will no doubt be done at a substantial loss and also make it glaringly obvious just how much every similar property on the banks books is also over valued. Maybe I’m paranoid but I doubt it very much .

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I have a growing suspicion that a great many developers are only trading because of the grace of the banks. They have lots of stock sitting on there books they refuse to off load at market prices. I don’t think banks are letting them sell the stock because this will no doubt be done at a substantial loss and also make it glaringly obvious just how much every similar property on the banks books is also over valued. Maybe I’m paranoid but I doubt it very much .

I believe you're completely correct. It's looking like NAMA isn't going to be so gracious to them..

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  • 2 weeks later...

Just been reading the terms of the CVA for Micwall Developments of Ballygowan - a typical nightmare - they have about £25m of development loans from Ulster Bank secured on a landbank which has plunged in value so it is now, at best worth £19m. The directors are all up their ******** in massive PGs. The CVA of course only covers the unsecured creditors who are doubtless all too aware that a straightforward administration would lead to them being stiffed in favour of Ulster. The CVA depends on an increasing number of properties being sold into a rising market over the next three years.

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I had cause today to have a look at the latest administrators report on Hanna Quality Homes, a Coleraine/ Portrush developer which went under last year. The report, which covers the 12 months to March, is not a happy tale.

Top line - when the administrator's work is done the secured creditor, Ulster Bank, will still be £2m short. Which of course means the usual hapless band of unsecured subbies and small traders won't get a penny.

As to the administrators effort to liquidate assets:

Site at Sea Road, Castlerock with pp for 2 semi-d and 1 d - somebody had agreed for 185k and was supposed to complete in October 09 but then mucked about so much that the site is back on the market.

Wheafsheaf, Coleraine - 2 complete semi-d; one had been agreed for 245k but fell through, but now both have been sold at 220k and 216k.

Glenvale Pk, Portrush - 3 townhouse and 2 semi-d, but Hanna's only have a 60% share. The 40% owner had agreed to take the 60% interest for 530k but sale still not completed.

Ballymadigan Rd, Articlave - barn with pp for 3 bed conversion. Sold for 60k.

Mill Farm, Mosside - site not owned by Hanna's but they have worked on 11 units to varying degrees. Administrator want 185k for the works, site owner is disputing that figure.

O'Hara Dr, Portstewart - again site not owned but adminstrator looking 20k for works and again site owner hardballing.

And finally the adiministrator wants £10k from Mrs Hanna after the company directors sold her plant and equipment for below Market rates. At the time the report was written she hadn't paid up and threats of legal action were in the air.

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  • 2 weeks later...

In what way?

it seems at the very least his position has led to him getting involved in this social housing project only to then offer a higher price to develop the land himself for his own self interest.

i always like to think people in positions like Chairman of the Northern Ireland Policing Board might have a moral compass....

the one good thing at least is he refused to sell it back to for 5 million+ shortly after , such was the booming market...... :lol:

Edited by getdoon_weebobby
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it seems at the very least his position has led to him getting involved in this social housing project only to then offer a higher price to develop the land himself for his own self interest.

i always like to think people in positions like Chairman of the Northern Ireland Policing Board might have a moral compass....

the one good thing at least is he refused to sell it back to for 5 million+ shortly after , such was the booming market...... :lol:

Thats not what the Police are investigating.

I heard that the site went on the market and he bought it.

But its a cracker of a story.

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