An Irish unit of US investment group Quadrant, Qrea Ireland, has reduced the value of its property investment loans in Ireland and the UK by more than € 132 million due to the Covid pandemic.
rea also appointed last year a receiver of two Irish companies jointly owned by UK investment group U + I and US firm Colony Capital.
The move came after the two Irish companies – Development Securities Properties Donnybrook Ltd and Specter (Ballymoss House) Ltd – defaulted on interest payments due last October.
Qrea held a mortgage on Development Securities Properties Donnybrook for which the collateral included Donnybrook House in South Dublin.
Donnybrook House was remodeled at a cost of around 16 million euros and was relaunched in 2018.
Qrea stated in the accounts which have just been filed for the fiscal year ended at the end of June, that it has taken legal steps to prepare enforcement measures in relation to its interests.
“McCann Fitzgerald has prepared a coercive measure to retain control of the site with a view to a possible sale or reimbursement of the facility,” note the accounts.
“The company has confirmed that payment from Ballymoss is ongoing and scheduled for early February,” he added.
Kieran Wallace of KPMG was appointed receiver of Development Securities Properties Donnybrook and Specter (Ballymoss House) last November due to loans owed to Qrea.
U + I indicated in interim results published last September that it left with immediate effect its participation in its Specter joint venture with Colony Capital. This led U + I to take a £ 10.6million depreciation on the company.
“The platform was created in 2016 to redevelop commercial properties in Dublin and London,” U + I noted at the time. “The rental market for the five buildings on the platform has, however, been severely affected by the lasting effects of the Covid-19 pandemic and the need for significant additional investments to address banking positions.”
Qrea had loans totaling € 437 million with borrowers at the end of June. This against 490.4 M € at the end of the previous financial year.
It loaned an additional € 192 million during fiscal year 2020, but confirmed that it wrote down just over € 132 million in assets.
“The majority of the write-down was calculated primarily in the UK retail sector on mezzanine facilities with Parkgate, Carlisle and Westwood with additional write-downs on four other facilities,” the accounts say. “There was also a depreciation calculated on 10 installations in the Irish market.”
The company said it has accepted maturity extensions for a number of existing loans on its books.
“If the effects of Covid-19 are deeper and more prolonged than currently expected, it could have an impact on future reporting periods of the company,” warned its directors.
“However, the directors have taken into account the impact of current developments in the Covid-19 situation on the company and, based on the current information available to the company, are happy to continue operating and will continue to monitor the situation. very closely, “they noted in the accounts.
Atlanta-based Quadrant Real Estate Advisors manages approximately $ 1.3 billion in assets.