Northern Ireland

Omagh firm Shergrim Properties owes bank £19m

It has emerged that a company which planned to build more than 500 houses in Omagh was placed into receivership after its bank was unconvinced it would be able to repay its loans.

Shergrim Properties owes Ulster Bank more than £19.6m.

The firm had plans to build 413 homes at Strathroy Road and another 106 at Beltany Road.

Ulster Bank appointed a receiver in May and he filed his report on the firm to Companies House earlier this month.

The receiver, Gregg Sterritt of financial consultancy FGS, said the directors of Shergrim Properties believe the two sites will be worth £19m after they have been fully developed.

Funding

However, he said that at this point in time it is "extremely difficult" to determine the future value of the sites.

He said this was as a result of the weakening of the property market in Omagh combined with "a severe shortage" of bank funding for such development projects.

He has engaged a third party to carry out an analysis of the Omagh property market over the medium to long term.

If the sites were to be sold immediately they would be worth "substantially below" £19m, he added.

Mr Sterritt said that once he had assessed all available options he would hold discussions with Ulster Bank to establish the best way forward.

Shergrim Properties is controlled by the Cunningham family who are better known as the owners of Strathroy Diaries.

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