Accounts recently filed by Blackpool Properties Ltd and Douglas Developments Ltd show that losses declined by 67% from €123.3m to €40m in the year to Mar 31, 2011.
The Cork-based group owns a number of shopping centres and other developments in Cork City, including Douglas Village and Blackpool.
The majority of the group’s borrowings were with Bank of Ireland and were transferred to Nama in Aug 2010. The group submitted a business plan to Nama in Feb 2011.
The report states: “The plan necessitates disposal of a number of non-core assets, completion and sale of assets under development, further property lettings, significant reduction in costs and debt restructuring to include a deferral of some interest payments.
“The directors are confident that approval of the business plan together with the ongoing renewal and restructuring of the group’s loan agreements with its financial institutions will provide the necessary platform and framework for the business to continue as a going concern.”
The directors state that they “are confident that its lenders will approve the plan given the quality and earning ability of the core assets”.
Along with lodging a business plan with Nama, Douglas Developments is seeking the restructuring of loans with the Bank of Scotland.
The filings relating to Douglas Developments show the firm recorded losses last year of €29.2m compared to losses of €64.8m in fiscal 2010. The losses included a €11.8m write-down in property assets; a write-down of €4.2m in financial assets and a €10.5m provision against group balances.
In respect of Blackpool Properties, they show that the firm’s losses narrowed to €11.1m from €56.5m in 2010.