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Ulster Bank takes over Banbridge Outlet store | Ulster Bank takes over Banbridge Outlet store |
(about 1 hour later) | |
Ulster Bank has taken control of The Outlet centre in Banbridge following financial problems for the developer. | Ulster Bank has taken control of The Outlet centre in Banbridge following financial problems for the developer. |
The £70m store, the biggest factory outlet in Ireland, opened in 2007. | The £70m store, the biggest factory outlet in Ireland, opened in 2007. |
Neither Ulster Bank nor the owner, Guernsey-based developer, John Farmer, has made any comment. | Neither Ulster Bank nor the owner, Guernsey-based developer, John Farmer, has made any comment. |
It is thought that the move by the bank to take control, rather than put the development into administration, may be seen as a vote of confidence in the scheme's long-term future. | It is thought that the move by the bank to take control, rather than put the development into administration, may be seen as a vote of confidence in the scheme's long-term future. |
Demise | Demise |
BBC Northern Ireland business editor Jim Fitzpatrick said the retail park had "fallen victim to the demise of the southern shopper". | BBC Northern Ireland business editor Jim Fitzpatrick said the retail park had "fallen victim to the demise of the southern shopper". |
"It was conceived for an all-Ireland market with the developer citing the big savings that could be enjoyed by southern consumers. | "It was conceived for an all-Ireland market with the developer citing the big savings that could be enjoyed by southern consumers. |
"But the huge cost of underwriting the Republic's banking sector has left Irish taxpayers with considerably less money to spend. | "But the huge cost of underwriting the Republic's banking sector has left Irish taxpayers with considerably less money to spend. |
"That, combined with higher petrol costs, has removed the incentive for shoppers to head north for a bargain." | "That, combined with higher petrol costs, has removed the incentive for shoppers to head north for a bargain." |
Documents seen by the BBC show that the bank is holding The Outlet in a company called West Register (Northern Ireland). | |
Ulster Bank's parent company, RBS, has set up a special group of companies called West Register. | |
Recover | |
The purpose of this group is to hold troubled businesses that the bank thinks it should retain because of the possibility that they could recover some of their value. | |
For example, the Richmond Centre in Londonderry was bought by West Register last year after the company that owned it went bust owing RBS millions. | |
In May, an Ulster Bank mortgage relating to The Outlet was registered against West Register (Northern Ireland). | |
In a statement, Ulster Bank said the shopping centre had a strong tenant list making up its 82 stores, employing approximately 500 full and part time staff. | |
"West Register (Northern Ireland) Property Limited will work with the Centre's management team to secure the long term success of The Outlet." |