Duignan venture with Pierse €30m in red
Firm that raised €77m for Swords complex has liabilities of €45.1m
Pierse Contracting, which is in liquidation, held half the shares in Mall Developments. Photograph: Brenda Fitzsimons
A joint venture involving developer Eamon Duignan and the now defunct Pierse Contracting ended last year almost €30 million in the red, according to figures just filed with the Companies’ Registration Office.
In 2007, Mr Duignan and fellow developer, John McCarthy, joined forces to build Swords central complex, a mixed retail and commercial development in north County Dublin, using a company, Mall Developments.
Pierse, which is now in liquidation, held half the shares in the company, while Mr Duignan and Mr McCarthy’s family controlled the other 50 per cent between them. The building contractor’s shares are now in the hands of its liquidator, Simon Coyle of Mazars while the developer retains their interest. Its most recent accounts show that at end of last year, it had total liabilities of €45.1 million and a net deficit of €29.5 million. Its assets were valued at €15.2 million while it had €500,000 in cash.
The accounts note that the company “incurred a significant loss for the year” largely driven by the interest charged on its loans. That and a write down in the value of its properties in 2011 was responsible for its overall deficit.
“The company has insufficient income to service its borrowings and is thus dependent on the continuation of financial support from the company’s bankers,” the accounts state. It adds that to date, that support has been forthcoming and the interest has been rolled up into the overall loan.
Mr Duignan is a long-established developer and has been involved in a number of shopping centres. He exited Nama when it sold his loans, reported to be about €250 million, late last year.