Colony questions Ronan Group’s $ 189 million loan with new status
Colony Capital, an American investment group, has placed a loan it made to Johnny Ronan’s Waterfront project in “non-accounting status” due to the impact of Covid-19 and delays.
The US investor updated the status of the loan to Ronan Group, which is controlled by the leading developer, in its recent quarterly results.
Loans that are 90 days or more past due on principal or interest, or where there is a reasonable doubt that they will be collected on time, may be considered non-performing and placed in arrears. .
In the results, Colony said uncertain market conditions due to Covid-19 could lead to future depreciation or “loss of investment.”
“Given the delays and the potential negative impact of Covid-19 on market conditions, the loan has been placed in unrecognized status for the quarter ended September 30, 2020. We are working with the borrower and evaluating options .
“The original loan maturity date is December 31, 2020, and the borrower is unlikely to qualify for an automatic extension,” he added.
Colony has an equity interest of $ 189.6 million (€ 160.3 million) in a senior mortgage loan for $ 310.9 million (€ 262.8 million). The first mortgage relates to the Dockland project, a mixed-use development project in Dublin.
The results indicate that Ronan Group has a building permit for 420 apartments and approximately 380,000 square feet of office space on the site. He has since sought to increase that number to 1,000 residential units spread over two towers of 40 and 44 floors. Despite the extension of the project schedule, the enabling works are expected to be completed by January 2021.
Colony added that the delay could limit the Ronan Group to getting a construction facility on schedule.
In a statement, Ronan Group said work on the site was already underway and Ronan Group and Colony Capital would submit a new development application in the coming days. The statement said Ronan Group was eager to implement the program alongside its partners.
It is understood that Colony Capital and Ronan Group are seeking long-term strategic investors for the assets in the portfolio, with a refinancing process managed by Eastdil for certain assets nearing completion.
It is further understood that Colony, which would rebalance its portfolio towards digital infrastructure, will remain invested in its Salesforce and Facebook developments, as well as in the Waterfront, which is part of the Dockland project.
In 2018, Colony Capital and Ronan Group finalized the acquisition of Project Waterfront for a price of over 180 million euros.