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Sunday 26 March 2017

McKillen shopping centre firm loses €8.5m on Cork writedown

RETAIL

Emmet Oliver

A SHOPPING centre in central Cork has suffered a one-off property writedown pushing the Paddy McKillen-led company which owns it to an €8.5m loss.

The company, Powerscourt Shopping Centre Ltd owns the Savoy Centre in Cork city, a shopping centre cum nightclub.

The centre is "fully let and performing well'', explained a spokeswoman. The loss relates solely to a property write-down on the previous years accounts of between 25pc and 30pc, said the spokeswoman.

The company despite the name no longer has any connection to the Powerscourt Town Centre in Dublin, a property also linked to Mr McKillen.

The company is owned by Talmak Investments, where the main shareholder is developer Paddy McKillen and his associate John Anthony Leonard.

McKillen hit the headlines in 2010 when he challenged the procedures, legality and scope of NAMA.



NAMA

At that point Anglo-Irish was supportive of Mr McKillen's loans not going into NAMA and said it was sorry to hear he was disillusioned over NAMA.

Deloitte, auditors to Powerscourt Shopping Centre Ltd, have stated that a "material uncertainty'' casts a significant doubt on the company's ability to continue as a going concern.

"The company and other group companies continue to manage the business and pay all working capital liabilities as they fall due, including the servicing of all interest due on its bank facilities.

"The company's ability to continue as a going concern is dependent on the group achieving projected cashflows. The directors are confident that projected cashflows can be achieved,'' the note states.

The company is an unlimited firm so is not obliged to file accounts with the Companies Registration Office.

The company is listed at 59 South William Street, the address of the Dublin shopping centre itself.

The liabilities of the company exceed the assets and there may be a need to hold an EGM, the auditors state.

Irish Independent

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