Ballymore subsidiary Clearstorm shows end-of-year assets of €191m

LONDON-BASED Ballymore Properties subsidiary Clearstorm had assets worth close to €191 million at the end of its 2011 financial year, the latest figures show.

Clearstorm was a joint venture between Ballymore and Irish Nationwide, but the building society sold its stake back to the property developer in 2007, netting it a profit of €41 million.

The company had net debts of €39 million on March 31st, 2011, the end of its financial year, and its properties were valued at €190.9 million, a slight increase over the €183 million recorded 12 months earlier.

However, accounts for Clearstorm recently lodged with the British companies’ registrar, show that, at the end of last March, it was depending on the support of its parent and State assets agency, Nama, to continue operating as a going concern.

Nama has since agreed a business plan with Ballymore. As a result, the agency is supporting the group’s activities, including developments in London.

Clearstorm has development sites in east London, in Tower Hamlets and close to Canary Wharf, where this week Ballymore agreed the sale of a 25 per cent stake in a docklands property – Wood Wharf – for €45 million.

Clearstorm’s sites, Leamouth north and south and Minoco Wharf, are expected to benefit from the development of Wood Wharf and from this year’s Olympics in London.

In 2010 the company wrote €19.4 million off the value of its properties, but directors decided against writing down the value of these assets last year. However, the notes to the accounts point out that the value the properties could ultimately realise depends on a number of factors, including the state of local and global property markets and the general economy. Auditors KPMG also draw attention to these uncertainties.

Clearstorm lost €1.7 million before tax in the 12 months ended March 31st 2011. Its 2010 losses were €19.9 million, which were largely accounted for by the €19.4 million write down on the value of its properties. Its 2011 revenues, which came mainly from its rent roll, were €305,000, but costs of more than €540,000 and an interest bill of €1.5 million left it with a loss for the year.

Ballymore intends using the €45 million proceeds from the sale of its Wood Wharf interests to pay down its debt to Nama. Canary Wharf Group plc agreed to buy out the Irish property developer and another partner, British Waterways, earlier this week.

Developer Séan Mulryan controls the Ballymore group.