Treasury Holdings, the property-development company owned by Johnny Ronan and Richard Barrett, has seen an increase in tenant rental
arrears according to the latest
report of its securitised mortgage-backed vehicle.

The portfolio includes Stillorgan shopping centre in south Dublin and office buildings in the city's main office districts.

"The challenging retail environment has been well documented. What is noteworthy is the level of interest cover which remains very strong as can be seen in the report," a spokeswoman for Treasury Holdings said.

The majority of the portfolio is single-let office properties to "prestigious occupiers" including KPMG, Mason Hayes & Curran, Fás and Bank of Ireland Asset Management, she said, and "there are no indications of tenant defaults".

"In the knowledge that some retail tenants may be experiencing trading difficulties due to the economic downturn, the company is monitoring closely this element of the portfolio. Occupancy remains very strong at over 95%."

Treasury wrote down the value of the portfolio to €570m in the last six months of 2008, a drop of €60m.