THIS WEEK brought an end to all that speculation about the fate of Fota Island Resort in Cork. The high-profile, 500-acre resort in Cobh is now officially on the market through Colliers International and Cohalan Downing under the instruction of receiver Billy O’Riordan of PwC. The agent says it is anticipating offers in excess of €20 million, although somehow the Block imagines this will be negotiable.
The resort, which covers 500 of the 700 acres on Fota Island near Cork city and comprises two golf courses, a five-star hotel and 59 lodges, has enjoyed continued popularity, despite being placed in administration. It turns over a healthy €10 million annually and Marcus Magnier of Colliers International is bullish on the sale, saying it’s already “attracting a good deal of domestic and international interest”.
He adds that the sale will test the strength of the quality hotel and leisure market because Fota is a particularly well-run trading entity and is turning in a profit.
Fota has a wide appeal, not only as a family retreat but also as a business, wedding, leisure and corporate venue. It has good training and sports facilities for teams in advance of big sporting events. The Fleming group built 120 lodges on the estate and sold 61 of them. The remaining 59 lodges have proven popular for good-value self-catering breaks in recent years.
The resort also shares the island with Fota Wildlife Park, one of Ireland’s top 10 visitor attractions.
Fota was one of the most prestigious properties in the portfolio of Cork based developers Fleming Group before it was transferred to Nama with around €1 billion in loans. Fleming ran into problems when it launched a partly built residential, office and retail scheme in Sandyford, Co Dublin just as the market collapsed. It had paid €245 million for more than 11 acres in Sandyford in 2005.
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