The directors of another developer Bernard McNamara's companies have been unable to verify the value of its property holdings, according to its most recent accounts.
In the 2008 accounts of Ridgevarn - which is overseeing a proposed development at Mulhuddart in north-west Dublin - the directors said the sudden deterioration in the economic environment had severe consequences for their ability to verify the appropriate carrying value of the property. Despite this, the directors increased the value of the property involved from €19.8m in 2007 to €20.2m last year. Ridgevarn owes €18.99m to group companies also owned by McNamara.
This is the second time this month that the directors of a McNamara company have had to admit their difficulty in establishing property values. Balladroon made a similar case over a development at Water Lane in Tullamore, where the value was maintained at its 2006 price of €4.15m.
As with Balladroon, auditors Horwath Bastow Charleton did not qualify Ridgevarn's accounts. However, they did express concern over the property valuations, the availability of continued support from the company's shareholders, group companies and related financial companies, and its status as a going concern.
"The financial statements do not include any adjustments that would result from the company being unable to realise amounts in excess of carrying value for its property-related assets or if continued funding was not available," they state.