BOI to give developer €7.5m for housing developments

Bank of Ireland has agreed to back developer Phil Reilly in the construction of housing developments in north Dublin and Louth to the tune of €7.5 million.

A firm linked to Mr Reilly’s Shannon Homes group has filed documents suggesting the bank will finance the developments, provided that he and a fellow director pledge all their shares in the group, which was one of the most prominent housebuilders in the city in the boom years.

The pledging of their shares in the group is a “strict condition” of the loan.

Documents filed by an entity, Shd Company, say the €7.5 million loan will be used to finance the construction of housing estates in Swords and in Blackrock, Co Louth.

It says the money will be used to finance the completion of Seamount Cove near Dundalk, a development of detached homes on a road near the local golf links.

“The development will consist of mainly detached homes with a handful of four-bed semi-detached and a small number of dormer bungalows,” the sales agents say.

Mr Reilly is also involved in commercial development in the north Dublin and Meath-Louth regions. He is one of the prime investors in the Southgate shopping centre in Drogheda.

Last week, it emerged the centre was involved in a rental dispute with its anchor tenant, Dunnes Stores. That row is expected to progress to the High Court.