The Portlaoise site on the market is the first forced sale of a significant development site in this country since the credit crunch and the slowdown in the property market, says Jack Fagan
A buyer is being sought for the site of a proposed shopping centre and office scheme in Portlaoise after the development company ran into financial difficulties. The asking price is €25 million.
It is the first forced sale of a significant development site in this country since the onset of the credit crunch and the slowdown in the property market.
Joint agents Savills HOK and CB Richard Ellis are to advertise the sale of the 2.7 hectares (6.5 acres) site on the instructions of Dublin accountant Martin Ferris who was appointed receiver by Anglo Irish Bank just before Christmas. The site, formerly occupied by the maltings company Minch Norton, is on the Dublin side of Portlaoise bounded by Coote Street to the east, Harpers Lane to the north and the railway line along the southern boundary. It has town centre zoning.
Maryborough Construction Holdings Ltd had already drawn down €23.5 million of a €84.5 million loan advanced by the bank to purchase and develop the site. The firm ran into trouble because of its over-reliance on loan capital for the project and the failure to find a suitable anchor tenant for the shopping centre to be known as The Maltings.
An interim examiner was appointed to the company in November after the directors expressed confidence that they could reschedule their liabilities in order to save all or a substantial part of the business. Six parties were reported to have shown interest in investing in the company but that funding has not so far emerged. The Maltings was to have comprised 16,460sq m (177,175sq ft) of retail over three levels and a multi-storey car-park with 678 spaces. The plan also provided for a six-storey office block extending to 2,967sq m (31,936sq ft) over the retail area.
Maryborough's failure to attract a heavyweight anchor tenant is hardly surprising given that Dunnes Stores already has two major outlets in the town while Tesco also has a large store. Superquinn is to anchor the new Parkside shopping centre while Lidl also has an outlet and Aldi has acquired a site for a new store. The only major player not represented in town is Super Valu. Portlaoise has population of almost 15,000.
