Musgrave has bought out an estimated €80 million of HCJV’s property loans owed to IBRC and flipped them on to a company controlled by Anne and Tom Caulfield, who are brother and sister, and their business partner John McCarthy, who is a former Musgrave employee.
Last September IBRC appointed receivers to HCJV, a property company linked to the Caulfield McCarthy retail group, one of the biggest SuperValu franchisees with about eight stores.
The Irish Times has reported that Musgrave paid in the region of €30 million for the loans, which were linked to properties, including Caulfield McCarthy’s SuperValu stores in locations such as Cork, Malahide, Enniscorthy and New Ross, as well as a couple of shopping centres owned by the investors.
The supermarket operating companies were unaffected.
As soon as Musgrave sealed the deal with IBRC and the receivers, it sold the loans on for the same consideration to HCJV’s parent company, Kenmichael, whose directors include the Caulfields and McCarthy. Kenmichael appears to have bought the loans using a facility from AIB.
Relations between the bank and the investors would have been strained by the receivership appointment, which also gave IBRC full control over the rental income from the units rented out by HCJV. But the receivership also brought unwanted and high- profile publicity for the retail group.
Reported by The Irish Times