Donegall Place Investments makes pre tax loss of £54m

A MAJOR Northern Ireland property firm that owns Bow Street Mall made a pre-tax loss of £54m in 2011, which follows a £26m loss in 2010.

Donegall Place Investments also owns Bloomfield Shopping Centre in Bangor.

In August last year, the group sold one of its properties, the Crossgates Shopping Centre in Leeds, for a reported £30m.

The firm was again affected by a write-down in the value of its properties and the write-off of loans due from related parties.

The group’s liabilities now outweigh its assets by £61m.

The rent it collects from its properties held steady at £21m while the annual interest bill on its bank loans fell to £15m, compared to £17m in 2010.

A note in the accounts states that “the directors are pleased with the rental returns achieved”.

The note adds that the group is “like many property companies facing challenging times in the current economic downturn”.

The company is owned by Pat McCormack who also has licensed trade interests, and Lebreh Ltd, which is associated with the Herbert family, who own a large Kentucky Fried Chicken franchise.