Masive blow to Dundalk

AN INTERNATIONAL real estate combine has pulled out of a €60m Dundalk factory outlet blaming severe planning delays.

The Ballymac Shopping Outlet scheme was to be developed by ING Real Estate Development in partnership with Coverfield Developments, part of the RJ McKinney group.

But a spokesman for ING confirmed in London yesterday that the factory outlet site in Dundalk is being sold to an unidentified Irish investor following lengthy planning delays.
The ING spokesperson said: "Planning delays have hampered the project and the company is now in advanced negotiations to sell the site."

It is believed that the Irish buyer still hopes to develop a factory outlet on the site, but may delay any development while rival schemes come on stream. Ballymac Shopping Outlet was planned to provide over 500 jobs.

The proposed 15,500 sqm Dundalk scheme has been held up for more than 18 months following objections and a judicial challenge by two local businessmen. Last year, an out-of-court settlement was reached and the scheme was finally given the go-ahead provided that it did not start before September 2006.

This delay has given Ballymac's main competitor in the North - Bridgewater Park, near Banbridge - a valuable edge. This project is now targetting an April 2007 opening.
It was earlier announced that some 40% of the space at Ballymac was already let, in legals or under offer.

Next was expected to anchor the 80-unit scheme designed by S&P Architects with a 928sqm unit.

Billy McKinney, managing director of the RJ McKinney group (founded originally in Hollywood, Co Down), launched a scathing attack on the Irish planning/judicial review system yesterday. "RJ McKinney has been trading for the last 120 years, mostly in Ireland," Mr McKinney declared. "Now, as a result of the recent planning objections, this will be our last development in Ireland."All told, it has taken us eight years of planning applications, frustrations and delays to come to this."

McKinney offshoot Coverfield will now focus instead on developing a factory outlet scheme in the Algarve.