Ronan Group says move doesn’t affect its wider development business and it is confident of refinancing the assets involved
Johnny Ronan offered some support for Sinn Féin. Photo: Jason Clarke
AIB and Bank of Ireland are set to appoint receivers over some of developer Johnny Ronan’s prime Dublin property assets, including the historic Bewleys Cafe building on Grafton St and high-end offices in Dublin 4 and IFSC.
Despite the move Ronan Group Real Estate (RGRE) said it is confident the assets can be refinanced.
The group’s ongoing development schemes, including housing on the huge Dublin Glass Bottle site are not affected.
The portfolio involved, all part of Ronan Group Real Estate (RGRE), does include office blocks at Connaught House on Burlington Road Dublin 4, AIB Investment House on nearby Percy Place, Kingram House in Dublin 2, and Kilmore House in Spencer Dock in the IFSC area in the North Docklands.
In a statement on Wednesday evening RGRE said it had entered a consensual restructuring process with the banks and invited Bank of Ireland and AIB to appoint a receiver to manage the refinancing of property assets owned by the company.
“The move acknowledges that the loans on the properties in question need to be restructured as a response to current market conditions and RGRE Holdings Ltd is working closely with its banks and the receiver to reach a mutually agreed resolution of the position,” RGRE said.
The properties sit in a group of special purpose vehicles financially insulated from the rest of the group.
“There are no cross-guarantees or cross-collateralisation, and the company’s interests in its other developments and other sites are unaffected by this decision,” it said.
The two banks are understood to be owed in the order of €130m, above the value of the assets even in a market hit by a sharp drop in prices in recent months.
Some of the assets involved have been held by Johnny Ronan for decades even after his main Treasury Holdings empire collapsed in the wake of the bursting of the property bubble more than a decade ago, including a spell under the umbrella of Nama before he successfully refinanced away with alternative lenders.
In relation to the current situation, RGRE said it is confident that its refinancing deal will enable the receivers to be discharged in a manner that is satisfactory to all parties.
“Refinancing discussions are continuing notwithstanding the receiver appointment.”
The company said the process is expected to take several weeks
A spokesman for RGRE Holdings Ltd said: “We recognise the need to restructure the financing of these assets and we are delighted we have been able to work with our current lenders to begin a steady, managed process to introduce a new investor to our business and put a new lending arrangement in place that satisfies all parties.
“The assets entering this receivership process are performing robustly and we are confident that RGRE Holdings Ltd will emerge stronger and better geared for the future. None of our other property assets is affected by this process.”
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