€100m property firm owned by brothers goes into liquidation

A PROPERTY investment company owned by Colum and Ciarán Butler, the businessmen behind the Leisureplex franchise, has gone into liquidation.

Martin V Ferris, of Ferris Associates, has been appointed as liquidator to South County Development Limited. The company’s primary activity is the development of a commercial property site in South County Business Park, in Leopardstown, south Dublin, known as Red Oak House.

The two men bought the company from businessmen Derek O’Leary and Reg Tuthill in March 2008 for an estimated €100 million. Latest accounts for South County Developments show the company posted a loss of €1.9 million in the 12-month period to July 31st, 2008.

According to the auditors’ report on the accounts, the net assets of the company were less than half of the company’s called up share capital at July 31st, 2008. The company had a deficiency of assets of €3.2 million at year-end.

The estimated cost of the development site, including the cost of construction, was €20.6 million.

The accounts also show the company had a loan of €24 million from a sister property company, Burcart Limited, which is owned by Colum and Ciarán Butler.

Latest accounts for Burcart show that the company had an investment of €10 million in South County Developments in addition to the loan of €24 million it made to its sister company. Burcart’s main source of finance is a loan of €34.6 million from Anglo Irish Bank, which has a series of charges on the company.

The Red Oak House development comprises two commercial buildings in the South County Business Park – Red Oak North and Red Oak South.