A very prominent Galway Developer has hit the wall. The banks are owed €313. He built house, Office, Retail, etc. Lots of properties in smaller towns around Galway, Pubs and town centre shops, big development of houses in ClareGalway with many houses unsold. These will be the first houses for sale by the banks in Galway on a big scale, which will drag down house prices even further, The spiral is getting slippy…
This will make headlines next week
gaius
4
Pity. I was just about to suggest a whiparound.
You have the love the timing… this comes out the day after the banks were saying to the Dail that everything was honky dory…
No Link as it’s not yet ‘official’
Hunky dory on residential arrears. They politicians may not have asked about the bad loans to developers.
So this is the start of the big developers going to the wall? Is €313 million big?
That is a serious wedge, this will be headline news.
Assuming this comes to pass, ( not doubting you OrwellGeorge, but I like to get confirmation 
), I cant say I’m surprised its a Galway lad.
I think the way Galway Canny McSavvies threw themselves into property in the last 6-7 years has been insane. Probably only Wexford & maybe Laois have more hare-brained developments.
I heard a rumour at the start of the year that a prominent Developer that bought a Galway City centre house off a relative of mine last summer was in trouble, but then a couple of weeks later I heard it was just a rumour. It may have been a rumour that he was bankrupt, but he’s definitely in trouble, & the bankruptcy may yet happen. I had a look at the house & its sitting empty a year later, after spending €750k on it.
While I have a certain amount of sympathy for FTB’ers & others when they find themselves in trouble, I certainly won’t be crying for these guys. I always just saw them as pigs with their heads in the trough gorging themselves.
It qualifies as bollock-naked in the “who’s naked when the tide goes out” stakes.
Next step up is “in flagrante delictu”.
Considering that one man has left debt that is equal to 1/5th of the current deficit for the country, i’d say it’s pretty big
ewd3
14
one third of a billion Euro on one Canny!!!
I’d say within 5 years being Irish will on it’s own preclude you from receiving credit in many European countries.
Does this developer like helicopters?
Has he built stuff in sandyford?
oilman
15
how was it allowed to get to that stage. did someone not stand up when 20 , 30 or 50 million was owed and point out what was happening…
oilman
16
helicopters are great Ted…
xman
17
What will be interesting is what the banks can actually raise from this.
If they are owed 313m and they liquidate all this Canny’s assets, what will the shortfall be?
That will give a good indication as to the current overvaluation of the property market.
And where’s 2Pack?? 
oilman
18
dividing the shortfall between a few million tax payers, it becomes easy to conceal
Any news on which banks are owned the money?
The most important figure will how much will be owed once the banks liquidate all the assets.
There are whole rafts of houses in Galway county that are 70% overvalued in my estimation, ( based on location & quality of build ). Every Galway developer I know also had a complete fetish about hotels & shopping centers, so it’ll be all kinds of stuff going under the hammer.
One of the other things I’ve noticed about these boys is the way the end up going in for 10-20% shares in other developers projects; its almost incestuous. Of course the downside of this is when one goes down its like a house of cards & that might be why the figure for this guys exposure is so huge.
The scary thought is that this might be a lowball figure !
