Coonagh centre sale ‘priority’ for receiver

THE receiver appointed to the Limerick-based Chieftain Construction Group said yesterday that he is “hopeful and optimistic” over the future of the group’s main asset, the Coonagh Cross Shopping Centre.

Gearoid Costello of Grant Thornton said that Chieftain has a number of other sites, but that the shopping centre on the northern outskirts of Limerick “is our top priority”.

The first phase of the 42-acre retail park opened in 2007. Tesco operates the sole anchor retail outlet at the shopping centre and owns its outlet there.

Mr Costello said: “It is a fabulous facility. This is not like an unfinished estate or anything like that, it has been finished to a very high spec. We are hopeful that we will be able to do something with it. We are examining every possibility.

He said that “we would hope to start exposing the site to the market soon, to get people interested”.

He said that Chieftain had greenfield and developed sites scattered around the country and their value is influenced by regional factors.

Last month, NAMA appointed Mr Costello in a bid to protect its position with the Chieftain Group.

This followed two of the group’s companies going into voluntarily liquidation after a creditor’s meeting was called in January.

One of the firms being wound up, Chieftain Construction Limited, owes €€53 million to creditors.

NAMA has appointed a receiver.

Mr Costello said yesterday that he wouldn’t even dare to speculate on what the Coonagh shopping centre may be now worth.

Last year, in a submission to the Midwest Regional Authority, Chieftain Construction admitted its Coonagh Cross development was a “white elephant” as it was not able to secure an extension to the park.

Chieftain Construction failed to secure planning permission for an extension to the retail park in order to secure a second anchor tenant.

The company told the Regional Authority that “the current status of Coonagh Cross is such that there was no value in constructing the development if it was going to remain a “white elephant” on one of the main access routes in Limerick city.