Gerry Gannon, one of the top 10 developers in Nama, is to sell his share in the golf resort he owns with Michael Smurfit
A 49 PER CENT shareholding in the K Club, the internationally renowned Co Kildare golf resort and Ryder Cup venue, is to be offered for sale on the international market by property developer Gerry Gannon.
The €60 million sale is expected to attract most interest from the US, Middle East and China because of the club’s reputation as a world class venue. The marketing campaign is to be handled by James Meagher of agent HT Meagher O’Reilly and its UK affiliate King Sturge.
Mr Gannon’s decision to sell his stake is likely to come as a surprise to the businessman Dr Michael Smurfit who holds the remaining 51 per cent shareholding. He spends much of his time in Monaco.
The terms of any sale will have to be ratified by Nama which has taken over responsibility for loans and assets held by Mr Gannon’s development group. Nama has already been informed of the plan to offload the K Club investment as part of Mr Gannon’s overall strategy for trading out of the present difficulties.
The club has had trading losses for the past four years, losing around €5 million in 2009. Turnover peaked at €22 million in the year after the 2006 Ryder Cup and has since fallen to about €13 million because of fewer visitors and a reduction in green fees.
Asked why he was selling his interest in the K Club, Mr Gannon said: “I cannot expect the taxpayer to fund an exclusive loss-making club in Co Kildare.”
The club was bought from the Jefferson Smurfit Group in May, 2005, for €115 million. The purchase also included a redundant paper factory in Clonskeagh which is now owned by Mr Gannon.
Dr Smurfit has the right to buy the 49 per cent share at a price that matches the highest bid.
The facilities at the K Club include the two renowned golf courses designed by Arnold Palmer, the 64-bedroom luxury hotel and the Ryder Cup Village which houses a second clubhouse and a ballroom.
There is planning permission to add 85 one and two-bedroom apartments alongside the hotel as well as a ballroom to accommodate 350 guests. The planners have also cleared the way for a courtyard development of 24 townhouses on the Ryder Cup course.
Mr Gannon will retain all development rights on the 560-acre estate where there is scope to build a further 250 homes. Dr Smurfit is entitled to 25 per cent of the profits from any residential development in the club. Mr Gannon also owns 85 acres outside the club grounds which will eventually be used for a new village centre in Sallins. Although it continues to lose money, the K Club seems determined to retain its exclusivity even though rival golf clubs have thrown open their doors by offering heavy discounts. Mr Gannon is known to favour a similar policy in the K Club to attract a greater number of younger members.
He is also anxious to enlarge the hotel and add on the ballroom to develop the club as a premier venue for weddings.
