Northern Ireland

Derry property firm owes bank about £26m

Ulster bank sign
Image caption DAB developments owe the Ulster Bank around £26m

A County Londonderry firm, DAB Developments, owes the Ulster Bank about £26m, according to an administrator's report.

The company, formerly known as Brookview Developments, had been in operation since 1999.

In February, administrators were called in as the company struggled to recover from the NI house price crash. A number of smaller creditors are owed about £500,000 and are unlikely to get any of that back.

DAB's main asset is its share of the Copperthorpe development in Drumahoe. The first two phases of that development were started in 2009 and all 76 units have been sold.

Planning permission has been granted for a third phase of 50 homes. To date, just nine of those have been completed and sold.

Another company involved in the Drumahoe site, Derry-based McDaid Developments (Ireland) Ltd was placed into administration in June 2010.

An administrator's report filed to Companies House showed the developer owed the Bank of Ireland more than £42m.

Its share of the site has been put up for sale by the Irish government's National Asset Management Agency.

DAB Development's other assets include the former Northern Counties club at Bishop Street in Derry - a listed building with planning permission to be converted to a boutique hotel.

The company's other properties are a shop unit on Victoria Street in Ballymoney and some agricultural scrub land at Iskaheen Road in Muff, County Donegal.