Sunday 24 September 2017

Asking price on Target Express premises cut

Peter Flanagan Commercial Property Editor

THE asking prices for three properties that were part of the former Target Express business have been cut as the receiver seeks to dispose of the final third of the firm's portfolio in the Republic.

In a statement, Savills, which is a joint agent along with CBRE, said that on the instructions of the receiver, Jim Hamilton of BDO, and on behalf of ASDA Property Holdings Limited, and the joint administrators Michael Jennings and Brian Murphy of BDO Northern Ireland on behalf of Farnley Investments Limited (in administration), report the price reduction on a number of properties previously occupied by Target Express in the Republic.

The three premises are a 2,112sqm site in Bracetown Industrial Estate, Clonee, Co Meath (pictured), a 3,078sqm unit in Rosemount Business Park in Dublin, and International House which is in the Damastown Industrial Estate in the capital and is some 9,567sqm.

The Bracetown site has seen its asking price reduced from €550,000 to €450,000, while the premises in Rosemount Business Park can now be had for €975,000 instead of €1.15m originally.

International House has seen the biggest reduction, with the building now available for €2.5m. That is a drop of €1m on the original price.

These are the last three of nine properties that were originally brought to the market after Target Express went into receivership last year.

Of the other six, one in Roscommon has been sold, while a sale has been agreed on another in Limerick. Offers have been made for the other four properties, which are located in Cork, Wexford, Galway and Meath.

According to Savills' Gavin Butler, the portfolio offers a "wide range of unit sizes and will be of interest to logistics/distribution companies looking to expand into other regions in Ireland and/or looking to relocate within their respective localities".

"The latest price reductions are extremely competitive and reflect excellent value for money," he added.

Target Express hit the headlines 12 months ago when the Revenue attached the company's bank accounts, effectively freezing them and apparently leaving the company unable to pay its staff.

At the time, Target Express founder Seamus McBrien went on a media offensive, accusing the Revenue of needlessly putting him out of business over a debt of €500,000.

PROBLEM

However the tax authority made clear it was happy with its decision, claiming it "only pursues enforcement options after specific engagement with the business".

"Enforcement options like liquidation, bankruptcy and attachment are only used as a last resort in cases where the debt problem is serious and intractable."

Court-appointed liquidators Grant Thornton described the business as "hopelessly insolvent" and most of the firm's assets were ultimately sold to Northern Irish logistics firm Masterlink.

Irish Independent

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