PGI get £40m for Slovakian shopping centre

A NORTHERN Ireland-based property development company which lists former taoiseach Bertie Ahern as an adviser has secured a £40 million (€47.4 million) financing package to develop a new £100 million shopping centre in Slovakia.

Parkergreen International (PGI), which has its headquarters in Newry, has negotiated the financing with Slovakia’s Slovenska Sporitelna bank and the Italian-owned VUB Banka.

Dr Gerard O’Hare, managing director of PGI, said the finance deal currently represents one of the largest loans of its kind in Slovakia, and “shows significant confidence” in the Northern Irish organisation.

He said without this kind of “financial stimulus” it would be impossible for “commercially sound companies such as PGI” to support such large projects as the Trnava Park Shopping Centre.

Dr O’Hare believes the new Trnava shopping development will act as an economic stimulus in Slovakia, and could generate hundreds of construction jobs and up to 2,000 full-time jobs when completed.

The Northern Ireland group has an established track record in developing shopping centres such as The Quays in Newry, the Fairgreen in Carlow and the Milford Shopping Centre in Connecticut in the US.

PGI acquired the Trnava site in Slovakia, which is located less than 40km from the capital Bratislava, two years ago.

The 33-acre site is situated close to a large Peugeot Citroën factory which employs 3,000 people.

The PGI group has built a large residential portfolio of property across central and eastern Europe, but the Trnava Park Shopping Centre is currently its flagship commercial development.

Dr O’Hare said the group has every confidence in the project, despite the global economic downturn and the slump in European property prices.

“Plans are now in place to commence work on site in September 2010 with the opening of 90 stores in Phase One in November 2011,” he said.

“Tesco has signed as the anchor tenant, and many other top European brand names are among the other 80 per cent of available space either already signed or in advance negotiations.”