Arcadia Developer Faces Collapse

Irish Government agency wants to put Glenkerrin into administration

Glenkerrin, the developer behind the Arcadia project in central Ealing, is reported to be at risk of collapse.

National Asset Management Agency (NAMA), the Irish State body tasked with reducing the amount of bad debts in the country's banking system has asked for the company to be put into administration. A hearing is to take place on May 10th to decide whether Grant Thornton will takeover the company's five property projects including the one in Ealing.

Glenkerrin currently has a debt of 650 million Euros owed to NAMA which has already appointed receivers to the Irish properties owned by Ray and Danny Grehan.

According to a report in the Irish Times, the Grehan's had been seeking further funding from NAMA to complete projects in the UK but the agency was unhappy with the documentation provided in relation to security on the loans and the opposition to the appointment of an independent non-executive to the Glenkerrin board.

The founder of Glenkerrin, Ray Grehan a former tiler, is reported to have bought a unit at the exclusive One Hyde Park development where one flat was recently purchased by a Ukrainian businessman for £136 million.

Eric Leach of West Ealing Neighbours said, "It's no great surprise that the Irish parented Glenkerrin UK is collapsing as the excesses and arrogance of Glenkerrin in the UK perfectly matched the obscenities of the exploded property bubble in Ireland. Sadly Glenkerrin's fall from grace probably further extends the property blight in the centre of Ealing. Thank goodness though that Glenkerrin didn't get the go ahead to demolish properties on the Arcadia site and begin building a 26 storey tower block across the road from Ealing Broadway Station."

Cllr Jon Ball, Liberal Democrat Ealing Regeneration spokesman, said, "The news of Glenkerrin's collapse provides a fresh opportunity for more appropriate regeneration in central Ealing. I hope that whoever buys the Arcadia centre and surrounding properties from the administrator recognises that Glenkerrin failed because they did not recognise the unique nature of Ealing and did not design a scheme that was appropriate for Ealing. The key for the future owners is to have a vision of Ealing that aligns with the desires of residents rather than horrifies them."

The company was given approval by Ealing Council for the development by Haven Green of a 1.7 hectare site which would have provided high density retail mixed use scheme consisting of 18,542 sq m of retail space and 567 residential units as well as office and leisure facilities. But after substantial local opposition the project was rejected at a public enquiry at the end of 2009. Having invested over £10 million in trying to get approval and over £100 million in site acquisition Glenkerrin had said that they would continue to try to move the project forward.

Liberal Democrat Ealing Regeneration spokesman Cllr Jon Ball says: '' The news of Glenkerrin's collapse provides a fresh opportunity for more appropriate regeneration in central Ealing. I hope that whoever buys the Arcadia centre and surrounding properties from the administrator recognises that Glenkerrin failed because they did not recognise the unique nature of Ealing and did not design a scheme that was appropriate for Ealing. The key for the future owners is to have a vision of Ealing that aligns with the desires of residents rather than horrifies them.''

May 6, 2011