North Quay losses at €25.4m

NORTH QUAY Developments, the company behind the Bridgewater shopping centre in Arklow, posted losses of €25.4 million in 2009, compared to a pretax loss of €4 million the previous year.

Accounts recently lodged at the companies registration office, and signed off on February 24th, show the company had a €37 million shareholders’ deficit at the end of 2009 compared to an €11 million deficit in 2008. The value of the company’s investment property was written down by some €17 million from €78.8 million to €59.4 million.

The auditors’ report to the accounts states that the company’s ability to continue as a going concern is dependent on the continued support of its bankers, noting that the company’s banking facilities were due to expire on February 28th, 2011. North Quay Developments, which banks with Bank of Ireland, had loans of approximately €94.4 million on its balance sheet as of December 21st, 2009. All bank borrowings are secured by charges over the company’s assets.

The accounts state that while the company has serviced its interest payments, it has defaulted on a number of capital repayments as a consequence of the economic environment.

When contacted by The Irish Times, a spokesman for North Quay said the company had successfully renewed its bank facilities, which are subject to continuing review. He added that the company, whose loans have transferred to Nama, is meeting its interest repayments and is currently turning a small profit.

The accounts show that North Quay’s operating loss of €400,000 in 2008 ballooned to €21.4 million in 2009.