Belfast Telegraph

Company Snapshot: PBN Holdings

International meltdown and Nama saga stall development

By John Simpson

PBN Holdings presents the consolidated results for a group of diverse businesses.

The directors’ report describes it as a holding company with subsidiaries in the hotel business, warehousing and storage, retail and wholesale trade beverages as well as the development, sale and rental of property.

Registered in Northern Ireland the company boasts property assets like the Savoy Centre in Glasgow and the West One Retail Park in Salford. The capital expenditure of £21m in 2007 should be seen alongside the £99m spent purchasing the unit trusts which own these particular properties. The consolidated accounts are influenced by recent changes in property valuations, which has also reduced its operating profit, and the forthcoming impact of Nama.

Net interest payments have risen from nearly £16m in 2007 to nearly £20m in 2009. Bank borrowing against property assets rose £178 from 2006 to 2009. Among the features of the accounts is the impact of unrealised capital gains or losses on the value of shareholders’ funds. In 2007 and 2008 the company registered unrealised gains of £30m and £40m respectively and £49m in 2009. The 2009 report also focuses on the impact of the meltdown in international capital markets with the groups’ banks revealing insufficient funds to pursue development projects.

Three Irish banks with loans to the PBN Group have advised PBN that these loan exposures are to be acquired by Nama. PBN directors will now need to renegotiate with Nama its new lending facilities.

Belfast Telegraph