Prentice estates owe American firms £23m

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A Portadown property firm that was placed into administration earlier this year owes more than £23m to two US investment funds.

The main creditor of Prentice Estates in Portadown is Lone Star, which is owed £21m, while Cerberus is owed £2m.

Lone Star bought its portfolio of Prentice loans as part of the liquidation of the former Anglo Irish Bank.

The loans held by Cerberus were originally made by Ulster Bank.

The administrators report describes how the firm had been selling properties to pay down its debts.

It had also entered a voluntary arrangement with unsecured creditors that involved selling two unmortgaged assets.

Secured

But due to “ongoing cash-flow pressures” the business was placed into administration.

The report shows the Lone Star loans are secured on a variety of commercial properties, mainly Portadown and Belfast.

They include the Waterside and North Towers office blocks at Clarendon Dock in Belfast.

The Cerberus loans are secured on two properties in Portadown and the Pinehurst retail park in Lurgan.

The company also had borrowings with Bank of Scotland relating to units in the Sydenham business park in Belfast.

Lone Star has been one of the biggest buyers of Irish loan assets in the last few years.