Failed property company's site dropped 90% in value

County Down property company, Olympus Development and Investments, bought a nine acre development site in County Roscommon with a Bank of Ireland loan of £732,000, and the administrator has now advised the bank that the site is worth just £50,000.

The firm, along with two related companies, Mayne Developments and Castle Bay Residential and Holiday Park Ltd went into administration in November 2010, and the administrator has warned of similar large devaluations in their combined property folio. One site in Scotland was used as security for a £1.6million loan, but has now been valued at just £500,000. A Bank of Ireland loan of £5.6million was used to purchase a site now valued at £850,000.

The extent of the devaluation of the various sites owned by these companies highlights the crash of the property market in Ireland, with undeveloped land in rural areas depreciating in value to a larger extent that residential properties.

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