Hardly surprising, look at the date it’s from the 'Sindo, this is the paper that brings you the insightlessness that is Brendan O’Connor, Barry Egan, Jody Corcoran and the vacuous accounts of boring women whose idea of life revolves around Brown Thomas (BTs) and getting mud smeared on them at a weekend retreat at some hotel down the country.
The article reads like part fishing expedition part getting the names out there for future developments. My guess is that the Indo may have the goods on Quinlan et al but the story is not watertight enough or complete enough to get past legal. So they are waiting for either someone to bite or someone to make a mistake and then they can run the story with a public interest defense. And if it involves settling some old scores then thats just an added bonus.
Hmm. £55 mn. So that would be a max of £20 mn then.
Still, they must have earned well over the four years they owned it? Not at a 3% yield they didn’t. Add in running costs…
Indeed, the other numbers are a bit suspect: propertyweek.com/story.asp?s … 149495&c=1
has the price at £70 mn and the yield at below 3%. So how a price of £75 mn can give a yield of above 3%, I don’t really know. Must be one of those unreal numbers from Fermat’s last theorum…
Still £15 mn profit isn’t bad, is it?
Well, that depends on what currency you invested from.
My guess would be that they lost money on the deal (its a distressed sale to generate cash flow) but not through fx exposure. The deal was most likely structured so that the ownership chain went through foreign domiciled SPV’s (Netherlands/Malta etc) so the fx exposure should have been hedged as a mater of course.
But on the other hand we are dealing here with gombeens and 55M of other peoples money so maybe the deals IR and fx risk was unhedged. So they would have lost a lot more than 5% on the deal.
The Indo says that Quinlan Private has re-registered itself as an unlimited company “sheilding it’s finances from the public view. The company had no comment to make on the move, which was confirmed in documents lodged with the Companies Registration Office.”
Seems like a fairly significant move for a company that is likely to be one of NAMA’s biggest customers.