Price achieved for hotel and apartment complex falls well short of debts on property in south Dublin docklands

A SWISS COMPANY supported by Israeli investors is believed to have acquired the long vacant Grand Canal Square Hotel in the south Dublin docklands.

KPMG receivers have refused to confirm the sale of the 169-bedroom hotel and the adjoining 84 apartments. The selling price is likely to be in the region of €30 million – a figure that falls well short of the debts on the development which are understood to be about €90 million.

The hotel and apartments were developed by the Portuguese-based Dublin builder Terry Devey and funded by Bank of Scotland (Ireland) which closed down its banking operation here two years ago.

The complex also includes five double-height retail units on the ground floor and 138 underground car parking spaces.

Lisney sold a further 21 “affordable” apartments which forms part of the same scheme and has three more units available for qualifying first-time buyers earning less than €58,000 per annum. Cathy Moran of Lisney is currently quoting €120,000 for a one-bed apartment and €205,000 to €210,000 for two three-beds.

KPMG has spent almost 15 months working on the sale of the distinctive hotel which is directly opposite the Grand Canal Theatre.

The Swiss company is believed to have links with the W Hotels chain which specialises in luxury boutique brand hotels in New York, Washington, London and Barcelona. There is no indication that the Dublin hotel will form part of that group.

The owner of one of the principal hotels in Dublin said yesterday that if the €30 million selling price is confirmed, then the new owners will have secured “quite exceptional value.”

The apartments alone can be expected to produce a rental income of more than €1 million per annum. Like the hotel bedrooms, they have been fitted out to a high standard.

The new owners will have to spend the best part of €10 million on fitting out the common areas in the hotel including the restaurants, bars, lounges, kitchens, ballroom, conference facilities and a spa with indoor swimming pool. Of the 169 bedrooms, 21 of them are laid out as suites.

Devey originally agreed to forward sell the hotel to the Galway developer and hotelier Gerry Barrett for €50 million in a planned turn-key operation in 2006.

The deal wasn’t completed when it fell victim to the banking crisis and the collapse in property prices.