Net liabilities increase to more than 500 million euros for the real estate group of developer Lalco

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The real estate development group’s net liabilities of companies owned by Galway developer John Lally reached over € 500 million.

New figures filed with the Companies Office show that the net liabilities of the subsidiaries of Lalco Holdings increased by 66 million euros to 506 million euros.

The holding has just filed three accounts with the Companies Office for the years 2011 to 2013 which show the increase in corporate liabilities.

A note attached to the accounts indicates that the directors have an agreement in place with the National Asset Management Agency (NAMA) which provides for a corporate debt repayment plan concluded in 2020.

The memo reads: “Certain guarantees, collateral and default conditions are in place under the agreement.”

The accounts show that the cumulative losses of Lalco Holdings increased slightly from 54.52 million euros to 55 million euros in 2013.

The memo adds that the directors believe that the company will not be able to recover the deficit as of the balance sheet date because the company has limited income and limited prospects for future income.

The failure of Lalco’s property development arm has been a number of high profile and costly land acquisitions in the Sandyford area of ​​Dublin.

The accounts show that the sole proprietorships, Devano Developments, had a deficit of 203.2 million euros at the end of December 2013 and Brackville Holdings had a deficit of 174.4 million euros. Another company, Sova Properties, posted a deficit of 80.1 million euros.

One of the companies, Fifes of Wiltshire, had a deficit of 2.69 million euros at the end of 2013. The company was granted a building permit for a 250 million euro tourism development at Humewood Castle by John Lally in Kiltegan, Co. Wicklow in 2009 for a period of five years. starred hotel, leisure center, tourist lodges and golf.

Mr. Lally bought the castle for 25 million euros. However, his ambitious plans never materialized and Humewood Castle was bought for 8 million euros by US billionaire John Malone in 2012.

Mr Malone also bought the Westin Hotel as part of his Irish hotel spending spree.

The growing losses of Mr. Lally’s construction companies stand in stark contrast to the growth of his hotel interests in recent times.

Last year, the Lalco hotel group bought the five-star Glenlo Abbey near Galway and also signed an agreement to operate Mr Malone’s five-star Westin Hotel in Dublin.

Lalco Hotel Group has an impressive portfolio, including the Hilton Dublin Kilmainham; Hilton Dublin City; Trinity City Hotel, all in Dublin; The Limerick Strand Hotel; and the Harbor Hotel in Galway.

The hotel group employs more than 1,100 people. Efforts to get in touch with Mr. Lally were unsuccessful.


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