Private clients of Davy Stockbrokers who, together with Joe O'Reilly's Castle­thorn Construction, invested in a €160m site at Shankill in Dublin, have been told "there is a reasonable prospect the loan on this investment will be included" in Nama.

A new investor update issued by Davy states that if the Woodbrook site were sold now, "it is unlikely that the net proceeds would be sufficient to repay any investor capital".

Appraisals of the development potential of the site found that, "if it were possible to secure development finance to proceed, it is likely that the investors would receive back the majority of their capital".

The total debt of €144.6m was funded by First Active and AIB and the expected review of the facilities has just commenced. "Securing development finance in the current market will be challenging," the update states.

Davy's clients and Castlethorn invested €52m and €38m respectively in the joint venture and the investors are entitled to a 17%-a-year coupon for up to nine years out of the profits generated from development of the lands, which will be paid on completion. Castlethorn also has the option of redeeming the coupon at any stage subject to the investors earning a minimum return of 60%.

The update also states that, prior to agreeing a proposed land swap with Woodbrook golf club, discussions will need to be completed with Iarnród Eireann and Dun Laoghaire Rathdown county council but the process "is slow and quite unwieldy".