Ireland's property market slump has seen a Kerry creamery lose over €15m from the value of its property portfolio, according to a newspaper report.

The Kerryman claims the Lee Strand Co-operative Creamery annual report shows a total, after-tax loss of €15.044m for 2008.

Much of the loss was due to the "large-scale writedown" of the value of the co-op's property interests, primarily in Tralee and Castleisland.

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The huge slump in the property market - which the auditors noted the co-op was particularly exposed to - compounded these losses, said the Kerryman report.

The most significant exposure is the co-op's Centrepoint building on Tralee's John Joe Sheehy Road. Despite being completed in 2007 at a cost of €25 million, the 150,000 square foot complex has remained unoccupied to this day.

The company has said it is ready to sell the facility, if a suitable offer is made.

Loan repayments of around €20m are also due to be paid back to banks in the next year. Though the co-op has negotiated and restructured the loans, it is expected Lee Strand will have to sell off some assets to meet its obligations.

(NS/KMcA)