Summerside mall for sale

After promising big things for the Waterfront Mall in Summerside, P.E.I., the Ireland-based Oran Group has put the shopping centre up for sale.

Oran bought the mall in 2006 for $4.8 million, and soon after announced plans to build 100 condominiums on top of it and do a major renovation, with a total project cost of $25 million. Work was to begin in the spring of 2007. But the project was repeatedly delayed.

Last week, the mall was put into receivership, and it is nowfor sale. It carries a debt of $6.7 million. P.E.I. developer Tim Banks holds out little hope for the mall.

"They have no national tenants," said Banks.

"The amount of the mortgage just kind of shocks me, in the sense that the whole retail market has moved up to the north end of town."

Mall manager Tina Mundy told CBC News on Monday that Oran's financial fortunes rested with the strength of the Irish economy, which collapsed in the recession.

"The bottom was falling out of the economy in Ireland. A lot of [Oran Group's] developments over there were taking a pounding," said Mundy.

Summerside Deputy Mayor Bruce MacDougall is hopeful a new developer will step in to take the mall over.

"It is disappointing," said MacDougall.

"At one time, there were some huge plans there, but apparently those have fallen through now, so we'll just look for bigger and better things."

The receivers will try to sell the mall as a going concern, despite the fact that it has only a 30 per cent occupancy rate.

"I think there will be somebody else who will come in," said Mundy.

"I'm optimistic for the tenants here in the mall that there might be somebody there with the cash that's going to be needed."

The receivers are doubtful the Anglo Irish Bank will ever recover the $6.7 million it lent the Oran group.