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A Northern Ireland property company is the major commercial partner of an English local council which has effectively declared bankruptcy.

Woking Borough Council says it is facing "a serious financial shortfall" and has stopped spending on all non-essential services.

The council borrowed £2bn to invest in regeneration projects and now faces overwhelming interest payments.

The Dungannon-based Moyallen Group partnered on a major commercial scheme.

The Victoria Square development is a mix of residential, retail and hotel space focused on three high rise towers.

There is no suggestion of any wrongdoing or shortcomings by the Moyallen Group.

It was developed by Victoria Square (Woking) Ltd, a 52%/48% joint venture between Moyallen and the council with loan funding of up to £700m from the council.

In its most recent accounts covering 2021, but published in May, it recorded an annual loss of over £490m due to a drastic fall in the value of its properties.

The auditors said the company's liabilities exceeded its assets by more than £500m.

Three weeks ago, government-appointed commissioners were sent into the council in Surrey over the "exceptional level of financial and commercial risk" the authority exposed itself to.

They concluded that the council's "historic investment and borrowing decisions are disproportionate to its ability to manage complex commercial activity".

Moyallen's original interest in Woking came when it bought the town's Peacocks Shopping Centre in 2008 before later becoming involved in the joint venture with the council.

The Peacocks centre went into administration in 2022 and was later sold to new owners.

Moyallen's best known business in Northern Ireland, the Rushmere Centre, was also put into administration in 2022 and was bought by a local joint venture earlier this year.