AIB set to make 87% loss on loan to Mick Wallace for Dublin site

Allied Irish Bank (AIB) is set for a major loss on the €4 million it lent to independent TD Mick Wallace to purchase a site in Dublin.

This follows a receiver to sites formerly owned Wallace’s M&J Wallace Ltd, Gerry McInerney securing €510,000 from the sale of the site at Morean Rd, Walkinstown in Dublin 12.

According to a receiver’s extract just lodged by Mr McInerney with the Companies Office, the site sold on March 3rd last to O’Connor Cabins Ballisodare Ltd.

The price realised for the site was sharply up on the initial valuation of €350,000 put on the site after AIB appointed Mr McInerney as receiver to the property in September 2012.

However, it is 87 per cent down on the €4 million that Mr Wallace borrowed from AIB to pay for the site with planning for 28 units.

Mr McInerney of Swords firm, McInerney Saunders has also overseen the sale of an apartment that AIB seized as part of the receivership with €65,000 realised in a sale to a Shan Ti.

However, AIB will not receive the full €575,000 from the sales after the various receivership expenses have been taken into account. The extract shows that marketing and legal fees connected with the two sales total €22,450.

The payments for the six month receivership period going from September 25th last to March 24th — including receiver fees of €11,070 — total €90,209. At its peak, Mr Wallace’s construction business was worth €80 million.

Mr McInerney was also appointed receiver to apartments 1,2,5 and 6 at 43 East Essex St in Temple Bar in Dublin 2 and these are now valued at €1m. Their former value topped €2.5 million.

The filings also show two commercial units at No 3 and 6, Quartiere Bloom, Lower Ormond Quay, D1 are valued at €520,000. The receiver's extract also shows two office units on the 2nd floor, Block B, Quartiere Bloom, Ormond Quay, D1 valued at €300,000.

Wallace properties at Quartiere Bloom were put up for sale by Mr McInerney last month. In 2011, ACC Bank appointed its own receivers to a number of other Wallace properties. In 2012, the Independent Wexford TD admitted deliberately under-declaring €1.4 millionof VAT paid to M&J Wallace.

Efforts to secure comment from Mr Wallace or Mr McInerney were yesterday unsuccessful.