Kilternan Hotel, Hotel News
The partially built
Kilternan Hotel & Country Club in south Dublin is to be completed and
operated by the Comer Group after being acquired at a knockdown price. The new
owners are believed to have paid about €7 million for the complex on which
€171.5 million from Irish Nationwide was spent before the collapse of the
property market.
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The 96 per cent write-down
in value is easily the largest recorded for a substantial investment since the
property and banking crisis began.
Marcus Magnier of agents
Colliers International, who handled the sale, said yesterday the general
consensus among investors who viewed the unfinished buildings was that it would
take an additional €20 million to complete the project.
Although Kilternan and two
other property-related companies controlled by the late Hugh O’Regan collapsed
back in August 2009, with overall borrowings of €198.5 million, the sale of the
country club was put on the long finger because of fears that a catastrophic
fall in value such as the one now to be recorded would have a knock-on effect
on the sale of hundreds of other distressed property assets. This is no longer
a concern given the remarkable recovery in property values and the ever
increasing competition between Irish and overseas funds for the larger number
of investments being offered for sale.
David Hughes of Ernst &
Young has been acting as receiver and manager of Kilternan which also includes
300 acres including a former golf course.
Although Comer operates a
successful golf course at its Palmerstown House Estate near the Dublin/Kildare
border, it is though unlikely it will resurrect the Kilternan course because of
its proximity to several courses including Dún Laoghaire, Powerscourt,
Woodbrook, Old Conna and Glen of the Downs.
About half of the €20
million likely to be spent on the buildings will be used to complete a
78-bedroom apart-hotel. Substantial funds will also have to spend on the
completion of the 128-bedroom hotel.
The 16,435sq m (176,903sq
ft) development also includes a spa, banqueting hall, lounge and service
facilities above three floors of hotel public facilities.
There is a particularly
large health centre with a floor area of 6,957sq m (74,883sq ft) over three
levels built around a four-court indoor tennis centre.
