Construction News

24/08/2010

Debt Stymies Omagh Housing Plans

Some 500 houses planned for Omagh won't now be built after news that the firm behind the plan was placed into receivership.

The Ulster Bank is owed more than £19.6m by Shergrim Properties who were to build 413 homes at Strathroy Road and another 106 at Beltany Road in the Co Tyrone town.

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Ulster Bank appointed a receiver in May who said the directors of Shergrim Properties believe the two sites will be worth £19m after they have been fully developed.

But, it is believed that, if the sites were to be sold immediately they would be worth "substantially below" £19m and discussions with Ulster Bank to establish the best way forward are continuing.

(BMcC/GK)

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