Jermon property firm in trouble

CREDITORS OF a major Co Tyrone property company, which owns a landmark building in the heart of Belfast city centre, are facing an uncertain future after it was placed into administration.

Jermon Ltd, which is part of the Jermon Group, is the second major property company in the North this week to seek outside assistance.

Belfast-based Carvill Group, which has been in business for more than 60 years, confirmed earlier this week that it is in discussions with creditors about entering a creditors voluntary agreement process.

The company says it is continuing to trade as usual while it examines its options.

Dungannon-based Jermon Group, which is unaffected by the appointment of an administrator to Jermon Limited, has been a major property player in the UK and more recently Poland.

Established by pharmacist Peter Dolan in 1997, it began with small-scale residential developments before expanding into retail, industrial and commercial developments.

The group grew rapidly and has been the key developer behind multimillion-pound schemes across Northern Ireland, Scotland, Central Europe and the Caribbean. But, in the last 12 months, certain divisions in the group have appeared to be under pressure.

This was illustrated by the decision last September by one of its major backers, Anglo Irish Bank, to appoint a receiver to three properties owned by Jermon Developments.

Administrators appointed this week to Jermon Limited will now take control of a property portfolio that includes the landmark-listed Scottish Mutual Building in the heart of Belfast’s key shopping district.

The company also owns other significant office and retail sites across the city.