Timeline: 2-14 Baker Street Parties: British Land, McAleer & Rushe. Bank of Ireland, NAMA, Portman Estate Topic: 2-14 Baker Street - in London which was subject to a loan from Bank of Ireland Timeline: Date Event Notes August and September 2005 Several media articles report on agreement between British Land and McAleer & Rushe for the sale (by BL) of 2-14 Baker Street. This was the second reported purchase by McAleer & Rushe from British Land the previous deal was for the Swiss Centre in Leicester Square. 5 th October 2005 16 th December 2008 2-14 Baker Street purchased by McAleer & Rushe by British Land for UK 57.2m. Purchase funded with a Bank of Ireland loan. The property comprised 94,000 sq. ft. held on a 98 year headlease from the Portman Estate. Planning Application submitted to Westminster City Council listing Owners pf 2-14 Baker Street as: 1. Portman Estate (freeholder) 2. Mourant & Co Trustees Ltd and Mourant Property Trustees Ltd as Trustees of the Baker Street Unit Trust, 22 Grenville Street, St Hellier, Jersey JE4 8PX 3. Baker Street Investments Limited 17-19 Dungannon Road, Cookstown, BT80 8TL 4. Baker Street Investments Ltd 5. EDF Energy Networks, 40 Grosvenor Place, London SW1X 7EN Guide price for the 2-14 Baker Street property was UK 47.5m with British Land offering it as a potential 150,000 sq. ft development opportunity. Travers Smith acted for McAleer & Rushe Group on the acquisition. The existing building tenants: Offices let on a lease expiring in December 2009. Retail accommodation let under four separate leases all expiring by December 2009 Planning application filed by Gerald Eve, Chartered Surveyors and Property Consultants Contact person: James Owens jowens@geraldeve.com Baker Street Unit Trust is owned by McAleer & Rushe with a Jersey address. See Appendix I Baker Street Investments Ltd is an entity owned by McAller & Rushe and was incorporated on Aug 17, 2005 Registered Office C/O MUCKLE LLP TIME CENTRAL, 32 GALLOWGATE, NEWCASTLE UPON TYNE, TYNE AND WEAR. No accounts filed (effective date: 31 March 2011) See Appendix 1 EDF Energy Networks had an electrical substation in the 2-14 Baker Street basement
16 th March 2009 16 th April 2010 16 th April 2010 11 th October 2010 Planning Approval granted by Westminster City Council to McAleer & Rushe Properties Ltd McAleer & Rushe sell 2-14 Baker Street back to British Land for UK 29m representing a loss of UK 28.2m (unadjusted) despite the site having been granted planning permission for new building that will be almost 50% larger than the original. British Land and the London Stock Exchange issue a press release outlining the deal. Incorporation of 2-14 BAKER STREET TRUSTEE NO.1 Limited; and 2-14 BAKER STREET TRUSTEE NO.2 Limited in Jersey. Planning Memorandum and Agreement signed with Westminster City Council. The agreement is signed as a Deed by 2-14 BAKER STREET TRUSTEE NO.1 LIMITED acting in its capacity as cotrustee of the Baker Street Unit Trust and signed by Andrew McNulty (Director) Andrew McNulty is likely the same person mentioned in this article: http://tinyurl.com/7va94wv See reference to being a director on a number of Jersey based companies Planning consent obtained for 139,000 sq ft of office space with retail units at ground level. This is nearly 50% larger than the original building (94,000 sq. ft.) The press release announcing the deal states As part of the sale arrangement, McAleer & Rushe will take a share in the development profits. 2-14 Baker Street is a prime Central London location at the start of Baker Street and adjoining Portman Square. Property prices in the vicinity were not unduly affected by the property downturn. The property was not placed on the open market. Commenting on the deal, JP Morgan say of British Land that they are on the right side of the trade Ownership of the 2-14 BAKER STREET TRUSTEE companies not detailed on the incorporation and associated company documents. A legal agreement signed with Westminster City Council in 2010 shows a connection between these entities and McAleer & Rushe. See information under 11 th October 2010 Memorandum and Agreement parties listed as: 1. The Portman Estate Nominees (One) Limited and The Portman Estate Nominees (Two) Limited 2. 2-14 BAKER STREET TRUSTEE NO.1 LIMITED and 2-14 BAKER STREET TRUSTEE NO.2 LIMITED acting in their respective capacities as trustees of the Baker Street Unit Trust 3. The Lord Mayor and Citizens of the City of Westminster Note: P34 of McALeer & Rushe Annual Accounts for 2010 and filed in March 2011 lists companies in which the directors of McAleer & Rushe own interests.
21 st March 2011 22 nd March 2011 29 th March 2011 in Property McAleer & Rushe submit a business plan to NAMA McAleer and Rushe file annual accounts. BBC reports McAleer & Rushe loans taken over by NAMA Loss of 11m on turnover of UK 62m. Turnover down 45% from the previous year. As at March 2010 the company had 51m of term loans and a further UK 10m of overdrafts. All loans repayable on demand - implying there had been a breach of covenant. Auditor indicates uncertainty about going concern. See: http://tinyurl.com/7zdhpcx 21 st September 2011 British Land present to Offices Analyst & Investor Event in London presention by Nigel Webb The presentation document (page 19) contains what may be deliberate errors (?) including the wrong address (10 Portman Square is stated and not the correct address of 2-14 Baker Street) and the wrong date of original sale (2004 instead of the correct 2005. See http://tinyurl.com/7dcfoh4 Excerpts:. we repurchased for approximately 50% of the value it previously sold for in 2004, we structured a three-way deal to purchase the site from McAleer and Rushe and the Bank of Ireland, with the consent of Nama. This is not an insignificant achievement. The acquisition has already performed very well to date. Since purchase, the valuers have increased the site value by 52% net of capex.
Appendix 1 Entities Associated with and/or owned by McAleer & Rushe Source: www.namawinelake.wordpress.com/the-developers Note: Baker Street Unit Trust; Baker Street Investments Limited and McALeer and Rushe Properties Limited highlighted in red and bold font Dunloe Ewart, Seamus McAleer, Eamonn Laverty (Eamon Laverty, Eammon Laverty, Eammonn Laverty), Mary Laverty, Martin Magee, Stephen Surphlis, James Higgins, Keystone Lintels, Keystone Roof Windows, Jermon Developments, McAleer & Rushe Construction Limited, McAleer & Rushe Residential Limited, McAleer & Rushe (Civil Engineering) Limited, London Road Estates Limited, Lavangna Limited, Conmurry Developments Limited, Flatmile Limited, College Court Properties Limited, London Road Apartments Limited, Louisville Properties Limited, Westland Estates Limited, Aire Commercials (Leeds) Limited, Aire Commercials Limited, Albion Inns Limited, Aldergrove Airport Hotel Limited, Baker Street Investments Limited, Baker Street Unit Trust, Bedford Street Developments Limited, BH Commercials (NI) Limited, Bramall Development Limited, Carnegie Inns Limited, Castlefarm Properties Limited, Clandeboye Developments Limited, Collegian Property Limited, Cookstown Developments Limited, Coolatinney Developments Limited, Dancelane Limited, Destrina Limited, Drumcairne Properties Limited, Drum Road Estates Limited, Drum Road Properties Limited, Flamewall Limited, Fleming Inns Limited, Forest Commercial Management Limited, Forest Commercial Limited, Forest Inns Limited, Glandor Limited, Glenastar Limited, GNT Properties Limited, Kildress Estates Limited, Timec 1205 LLP, Timec 1208 LLP, Timec 1206 LLP, Leicester Square Investments Limited, Lowscroft Limited, M&R Estates Limited, McAleer and Rushe Holdings Limited, McAleer and Rushe Properties Limited, MRDE Limited, MRP (Baltic) Limited, MRP (Blackfriars) Limited, MRP (Bournemouth) Limited, MRP (Finance) Limited, MRP (Lancefield) Limited, MRP (Portsmouth) Limited, Mullaghmoyle Developments Limited, Norham House 1138 Limited, Pentonville Properties Limited, Timec 1209 LLP, Plymouth Inns Limited, Pride Park Inns Limited, St James Gate Development Limited, Swiss Centre Limited, Taelos Limited, Termon Developments Limited, Waterfront Inns Limited, Westland Developments (NI) Limited, Westland Estates Limited, Westland (Sheffield) Limited, Wilmar Leisure
Appendix II McAleer & Rushe Annual Accounts 2010 and published 22 March 2011 excerpts
Annual account (PDF can be downloaded from: http://tinyurl.com/7jgj7ow