Smurfit gets a hole in one at the K-Club?

K-9

Haven't really kept up on the news in the last couple of days but:

Developer Gerry Gannon – remember he’s the one in the fedora who was last seen on TV with the missus stuffing the Brown Thomas bags into the back of a silver Range Rover – is reputedly one of NAMA’s Top 10 developers and his loans were acquired by the Agency in early 2010. One of his highest profile developments is the K Club in county Kildare, the world-class hotel and golf resort which also has significant residential property development – the history of the K Club is chronicled here together with details of residential development and the well-heeled buyers. Gerry is understood to have a 49% stake in the K Club with the remaining 51% owned by packaging tycoon Michael Smurfit. Gerry’s stake has been on the market since June 2010, with a price tag of €60m. In January 2011, it was reported that the owner of the remaining 51% stake, Michael Smurfit was interested in buying Gerry’s 49% stake through NAMA but “no figure has been put on the table and Dr Smurfit is waiting for a response from NAMA but they have yet to get back to him” Fast forward one year, and credible sources say that the sale of the stake has been agreed, that Michael Smurfit is indeed the buyer and wait for it, the price is understood to be just €10m.

So, TL;DR version, Smurfit buys an asset valued at €60 Million 20 months ago at €10 Million.

Nothing particularly wrong that, recession etc., probably not a long list of investors lining up, but:

There is also another angle of concern if this transaction is confirmed. By any standard, Michael Smurfit has been a business associate of Gerry Gannon, they’ve been in business together in the K Club since 2005. NAMA faces legislative restrictions in its choice of buyer. Remember the brouhaha last summer when Enda Kenny gaffed in front of the British Irish parliamentary party meeting in Cork and suggested shenanigans in NAMA’s sales which prompted this reassurance from the NAMA chairman a couple of days later that “in the case of property which is being sold by a receiver acting for NAMA, a purchaser is asked to make a sworn declaration that he is an independent third party purchaser not connected in any way whatsoever with the vendor”
Michael Smurfit’s company Smurfit Kappa bought its leased offices in Clonskeagh last year in a €8m-transaction overseen by NAMA, so the man obviously has a relationship with the Agency but has NAMA broken its own rules by apparently agreeing the sale of the K Club stake? NAMA is not saying.

TL;DR version:

NAMA wrote:

“in the case of property which is being sold by a receiver acting for NAMA, a purchaser is asked to make a sworn declaration that he is an independent third party purchaser not connected in any way whatsoever with the vendor”

Smurfit owns the other 51% of the K-Club, if that is an independent third party well..........................


AS for Smurfit, well for those not familiar with the Haughey scandals:

It was at the height of the Telecom Affair in the early 1990s that Des O'Malley christened its dramatis personae "the golden circle". This was when Michael Smurfit resigned as chairman of Telecom Eirean, after it was revealed that the State company had bought the Johnston, Mooney & O'Brien site for its headquarters in Ballsbridge for £5 million more than the same property had fetched 18 months earlier. It had been acquired for £6.5 million in 1989 in a transaction to which a Dermot Desmond-linked company, Freezone, was central and in which Smurfit had an interest. The following year, Telecom Eireann bought it for £9.4 million. Around the same time, Desmond stepped down as chairman of Aer Rianta. Subsequently, a High Court inspector's investigation concluded that Desmond had benefited from the sale. The aforementioned Joe Lewis, former owner of Glasgow Rangers and a close friend of the Three Musketeers, became known as "the mystery man" in the Telecom transaction.

Irish Politics, Current Affairs and Magazine Archive - Politico.ie | The Boys' Club


Sam Smyth of the Indo should be all over this, we'll see, I don't jump to conspiracy theories quickly, but this has the whiff of silage!

starbelgrade

"Smurfette gets her hole in one at the K-Club"

Sindri

Yes, this is interesting, you have my undivided attentiZZZZZZZZZZZZZZ
ZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ

zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz

MickySticks

TL;DR

Princess Consuela Bananahammock

The TLDR version was TLDR.

TheZohanS

If anyone thinks that NAMA isn't going to turn out to be the biggest scandal in a few years time they're deluded.

It's crooked.

starbelgrade

TheZohan wrote: »

If anyone thinks that NAMA isn't going to turn out to be the biggest scandal in a few years time they're deluded.

It's crooked.

Like a bendy mickey.

beertons

What club did he use?

MickySticks

Club milk

TheZohanS

beertons wrote: »

What club did he use?

The Old Boys Club.

K-9

TheZohan wrote: »

If anyone thinks that NAMA isn't going to turn out to be the biggest scandal in a few years time they're deluded.

It's crooked.

I've had a few dealings with them, found them pretty tough tbh.

Want to talk to them, "we'll call you", they want to call you, call us back by lunch time, call at 12:59!

Then, not representing "the Golden Circle".

Anyway, thinks of pun, Irish tax payer gets a wedgie while ordinary tax payer gets sand in the hole................

Taxpayer gets landed in the bunker while Smurfit gets sex on the beach!

Liam Byrne

As long as NAMA goes after Gannon for the balance, I don't care.

Just like the houses that were built during the bubble, the golf club was never actually worth €60 million.

So if NAMA got it at a 40% "haircut" (approx €36 million) and has now gotten €10 million for it, all NAMA needs to do is ensure that it get the remaining €26 million from Gannon.

If it does, I've no issue
If it refuses to, then that's a whole other scenario entirely.

K-9

Liam Byrne wrote: »

As long as NAMA goes after Gannon for the balance, I don't care.

Just like the houses that were built during the bubble, the golf club was never actually worth €60 million.

So if NAMA got it at a 40% "haircut" (approx €36 million) and has now gotten €10 million for it, all NAMA needs to do is ensure that it get the remaining €26 million from Gannon.

If it does, I've no issue
If it refuses to, then that's a whole other scenario entirely.

Smurfit shouldn't be buying this at all, or rather, NAMA shouldn't be accepting his offer, according to legislation and a NAMA quote.

This is NAMA paying developers 200k a year except on a far higher scale.

This is a big story for investigative journalism to investigate, probably too bothered about how online media is encroaching on their patch.

Anyway, Liam, I'd say you were very aware of the Haughey scandals in the early 90's, you not see were this could lead?