D2 PROPERTY Management Ltd, which was placed into receivership in June, made a loss of €981,641 in 2010 and had net liabilities at the year end of €5.1 million, its latest accounts show.
The investment vehicle, owned by developer David Arnold and financier Deirdre Foley, was placed into receivership by Bank of Scotland plc, which was owed €11.8 million. The loan was due to be repaid on December 26th, 2010.
Sources last night indicated that the company was about to emerge from receivership as an agreement had been struck between its owners and the bank.
This could not be confirmed with either side but it is understood a deal has been reached that will involve some repayment to the bank and a schedule relating to outstanding sums.
The accounts state that the company’s future as a going concern was dependent on the “availability of ongoing financial support” from its bankers and a “successful conclusion to the receivership process”. The directors believe “appropriate support and funding” would be made available for a period of “at least 12 months from the date of the approval of the financial statements [September 11th, 2011]”.
A note to the accounts states discussions were “ongoing” with the receiver – Michael McAteer of Grant Thornton – and the bank in relation to its loan.
D2 Property Management’s accounts show it also owed €14.5 million to the National Asset Management Agency (Nama) relating to a loan with Anglo Irish Bank that was transferred to the agency in July 2010. “Discussions are ongoing with Nama in respect of these facilities.”
D2 Property Management’s main investments were in Victoria SA, an entity involved in the £175 million purchase of 1-19 Victoria Street in London, and the Scott Portfolio Unit Trust, which itself was placed into receivership with Grant Thornton. The Scott trust owns 15 properties leased as bank branches to Halifax, which is owned by Bank of Scotland.
This company is a wholly owned subsidiary of D2 Private Ltd, which was not affected by the receivership. This entity is also controlled by Mr Arnold and Ms Foley.
D2 Private was set up by Mr Arnold and Ms Foley in 2004. Its website states it has a portfolio of projects in Ireland and Britain valued at £1.4 billion.
