Northern Ireland property developer’s A109 repossessed

Northern Ireland property developer’s A109 repossessed 11 Feb, 11, Source: HeliHub.com

BBC News is today reporting that the Irish division of Bank of Scotland had repossessed an A109A Mk.II belonging to Jermon Ltd – registered G-JMON.  The company, run by Dungannon resident Peter Dolan, was placed into administration on 27 January.  Jermon was formed in 1997, and purchased the 109 in 2006.

Both the UK province of Northern Ireland, and the adjacent country of Ireland, experienced a massive property boom in the first half of the last decade, fuelled by what we now know was over-exuberant bank lending.   This led to a large rise in helicopter operations with many twin turbine helicopters being purchased by property developers.  In the last three years this has turned right around the other way with most being sold.

Jermon was involved in a number of very large development schemes, usually centred around shopping centres or office blocks.  The ease of obtaining bank loans led many Irish developers to look overseas, and in one week in mid 2008, Jermon bought no fewer than four retail development sites in Poland and a 60% share in a former military airport in the Hungarian city of Mezokövesd – a 1,500 acre site with 3,500m runway which was intended as a logistis hub.

This recent move by Bank of Scotland follows the seizing of various other assets in May/June 2010 after Allied Irish Bank called in loans secured against particular properties.

Bank of Scotland Ireland was a major lender to developers during Ireland’s property boom, and was closed by its parent company Lloyds after suffering some catastrophic losses.  Its loan book is now being managed by Certus.

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