The Paddy McKillen jnr-backed property company that developed Clerys Quarter on the site of the former Clerys department store on Dublin’s O’Connell Street recorded pretax losses of €18.95 million in 2023.
Accounts filed by OCES Property Holdings Ltd show that the loss arose chiefly from the company recording a non-cash impairment of €15.38 million on its property along with interest payments of €9.86 million.
In a note with the accounts, the directors said that the asset would be sold following full occupation.
Last year international brands H&M and Decathlon opened outlets at Clerys Quarter. “We are now focused on leasing the remainder of the Grade A office space on site and completing the project,” said a Clerys Quarter spokeswoman.
Pre-opening, OCES Property Holdings Ltd recorded rental revenues of €169,157 from November 1st 2023 to year end and those rental revenues will have risen exponentially for 2024.
The pretax loss of €18.95 million is a seven-fold increase on the pretax losses of €2.7 million in 2022 when no impairment charge was incurred.
The company generated “other operating income” of €7.96 million in 2023 which was made up of the gain on property sales with a gain of €7.2 million relating to the sale of Block B and €750,000 in relation to the sale of Block C.
The note said that the result for the year and the year end position was considered to be satisfactory.
GreenOak has provided external financing totalling €61 million to OCES Property to finance the company’s venture.
In a post-balance sheet, the directors disclosed that on December 9th 2024, a 12–month extension to the GreenOak facility was approved in return for a €6.5 million loan prepayment to be made by way of a share cap equity injection and depositing 12 months interest and extension fees with GreenOak up front to be funded by way of a share cap equity injection.
Paddy McKillen jnr’s Oakmount is a small shareholder in the venture that is being driven by a division of New York-based real-estate firm Rockefeller Group – Europa Capital, and another local partner, Derek McGrath’s Core Capital.
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The parties purchased the site for a sum understood to be in the region of €63 million in 2018.
The new accounts put a book value of €59.3 million on the property being developed at the end of 2023.
This took into account €19.13 million from the disposal of Block B and the €15.38 million impairment.
A note said that the stock was valued at the end of December 2023 which took into account applicable yield rates, rental and recent market transactions.
OCES Property Holdings Ltd had a shareholders’ deficit of €49.68 million at the end of 2023 made up of accumulated losses of €79 million offset by share capital of €29.3 million.
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