Firm behind Southgate shopping centre has €35m losses
THE company behind Drogheda's Southgate shopping centre is sitting on losses of almost €35m, and its loans have been transferred to NAMA, according to accounts just filed with the Companies Registration Office.
The €120m SouthGate centre opened in 2008 after signing Dunnes Stores as its anchor tenant. The 17,000 square-metre development was being built by Rockmill, a company controlled by well-known builder Shannon Homes (Drogheda), which is owned by developer Phil Reilly.
Now, accounts filed for the 12 months to the end of March 2010 show that Rockmill is sitting on losses of €34.56m and had debts of €50m falling overdue the past year.
The abridged company accounts show that Rockmill wrote off €22m over the period. The company said it expected to agree a strategy with NAMA to tackle its debt situation.
It said the company was dependent on NAMA's support to continue as a going concern.
However, the company's auditors said that the directors were preparing a business plan for NAMA but had yet to have any direct discussions with NAMA.
Shannon Homes emerged as one of the largest private house builders in the Dublin and Louth areas during the construction boom.
In 2009, accounts for Shannon Homes (Construction) recorded a 91pc plunge in revenues from €38.1m to €3.4m after it simply stopped building houses in the wake of the construction freeze.