Nama has finally moved to sell the
in south Dublin despite fears
it could well set a record for its collapse in value.
Marcus Magnier of agents Colliers International is quoting between €5 million and €10 million for the unfinished complex on which €171.5 million in borrowings from the former Irish Nationwide Building Society was spent.
Even if a buyer is found around the half way mark of €7.5 million the writedown in value will still be a startling 95.6 per cent.
The failure of Kilternan and two other property related companies controlled by the late Hugh O’Regan in August, 2009, with overall borrowings of €198.5 million, signalled one of the first major property crashes in what has now become a lengthy crisis. Hundreds of other distressed property assets in Ireland and overseas have since been put into receivership and liquidation and duly sold on.
Fall in value
However, Kilternan was obviously put on the long finger, presumably because of fears
the inevitable catastrophic fall in value might have had a knock-on effect on the remainder of the market. There is little prospect of that happening now given the sharp recovery in property values and the intense competition between Irish and overseas investment companies for the various portfolios being offered for sale.
David Hughes of EY is receiver and manager of the Kilternan complex, which could end up being run as four separate entities – the hotel, sports centre, apart hotel and the extensive acreage – rather than as a stand alone country club.
Even though the landbank extends to 300 acres in the foothills of the Dublin mountains, it seems unlikely the golf course will be resurrected at a time when a great many golf clubs are under financial pressure. Kilternan also has the advantage of being within a short commuting distance of highly rated golf courses such as Dún Laoghaire, Powerscourt, Woodbrook, Glen of the Downs and Old Conna.
An estimated €4 million needs to be spent to complete the 128-bedroom hotel which could have a number of alternative uses including a private clinic, nursing home, educational training facility or even a casino.
The 16,435sq m (176,903sq ft) development includes a spa, banqueting hall, lounge and service facilities in three-storey bedroom wings sitting above three floors of hotel public facilities. The banqueting hall alone has a floor area of 594sq m (6,393sq ft). There are two kitchens to service the hall and a further kitchen alongside a cafe/bar at the thriving artificial ski slope facilities.
Magnier estimates that a further expenditure of up to €1 million will be needed to complete the health club which is also on the spacious side with an overall floor area of 6,957sq m (74,883sq ft).
The three level complex, built around a four-court indoor tennis centre, also includes a full-size swimming pool, children’s pool, steam room, sauna, treatment rooms and golf pro shop.
It is questionable whether the proposed 78-bedroom apart hotel on the site will ever be finished. Only about 10 per cent of the construction work has been completed and with buyers now more interested in conventional starter houses than out-of-town apartments, this element of the scheme may well be abandoned.
Colliers envisage that about 40 acres will be set aside for sale alongside the first three partially built elements of the development plan.
The balance of the land along the base of the Dublin mountains is likely to be sold off separately.