Craigavon: Rushmere Shopping Centre placed into administration

Rushmere is considered one of Northern Ireland's better performing shopping centres, with a low vacancy rate

The Rushmere Shopping Centre in Craigavon, County Armagh, has been placed into administration but is continuing to operate.

Two related shopping centres, Magowan West in Portadown and Peacocks in Woking, are also in administration.

The businesses are all associated with the Dungannon-based Moyallen Group.

David Warnock and Stephen Tennant of Grant Thornton have been appointed as joint administrators.

Stephen Cave, head of restructuring at Grant Thornton in Northern Ireland, said: "Our immediate priority has been to ensure the shopping centres continue to trade as normal under the ultimate control of the administrators, with no operational impact for tenants or shoppers.

"We have and will continue to liaise with key stakeholders, as we manage the position and consider future options."

Value sharply marked down

Typically an administrator will seek to find a new owner or investor for a business.

Rushmere is considered one of Northern Ireland's better performing shopping centres, with a low vacancy rate.

However the most recent accounts for the company that holds Rushmere, Central Craigavon Ltd, show the value of centre had been sharply marked down.

The accounts for the year ending December 2019 show the property's value had been revised down from £95m to £58m.

That meant it posted a pre-tax loss of £33m compared to a pre-tax profit of £8m in 2018.

Substantial borrowings from the Bank of Ireland are secured on the centre.

The 2019 accounts show that £98m was due to creditors within one year.

Those accounts also said the group's directors had obtained the ongoing support of its bankers and accordingly the accounts were prepared on a going concern basis.