CRUCIAL TO the proposed survival plan for Liam Carroll’s Zoe Group is the generating of income totalling just under €105 million – about €38 million on an annualised basis – up until July 2011.
This will help cover most of the interest owing to eight lenders on loans totalling almost €1.3 billion during 2009 and 2010, and more than all of the interest due for the first seven months of 2011.
Accountants KPMG, which devised the plan, expects rent of €23.2 million from residential properties up to July 2011, €52.7 million on commercial rents and dividend income totalling €28.8 million from stakes in ferry firm ICG and food group Greencore.
The court was told that the group’s rents would increase from €27 million to €30 million on an annual basis when rent-free periods for some tenants expire.
The group leases out 20 commercial investment properties and two development properties. A building completed by the group on Sir John Rogerson’s Quay with €36.5 million in loans drawn down since December is to be occupied by US financial group State Street on a 25-year lease renting at €7.7 million a year.
The group is expecting commercial rents of €4.64 million in October and €20 million next year in four instalments of €5 million in January, April, July and October.
Another €15.9 million will be paid on commercial rents during 2011 in three equal instalments.
The court was told that the Zoe Group’s commercial properties would be worth €408 million if the three- to five-year survival plan was put in place and €289.9 million if they were sold on a distressed basis over six months. The valuations were provided by CB Richard Ellis, taking into account a 10 to 15 per cent decline on investment properties since December 2008.
Figures provided in court this week suggest that Google is paying €6 million a year on its rental of a building in Mr Carroll’s development on Barrow Street in Dublin.
SIMON CARSWELL
