THE FALLING property market has forced services group Newcourt to cut €2 million off the value of the clinic it bought last year in a deal worth €12 million.

Newcourt acquired a 25 per cent stake in Aldborough Clinic in Dublin when it bought Ely Property.

Last year, the company bought the remaining 75 per cent of the property, for a market value of €12 million, paying for it by issuing shares and taking on €6 million in debt.

Yesterday, the group said the downturn in the Irish property market has forced it to cut the value of the property.

"While management are currently exploring a number of options in relation to this development, we believe it prudent at this time to write the value of this asset down by €2 million to recognise the impact of the downturn in the Irish property market over recent months," Newcourt said.

The building is listed and the company is converting it into a healthcare clinic.

Dublin-listed Newcourt said yesterday that revenues were up 34 per cent in the first half of 2008 at €88 million, from €65.8 million during the same period last year.

Profits before tax fell two-thirds to €1.7 million this year from €5.2 million in 2007.

Earnings before interest, tax and write-offs were were down 8 per cent at €6.9 million this year.