Kilternan Country Club sold at a 96% discount

Wednesday 13 August 2014 10.04
NAMA was reluctant to offload Kilternan amid concerns it could set a new floor for discounts on hotel assets
NAMA was reluctant to offload Kilternan amid concerns it could set a new floor for discounts on hotel assets

The Kilternan Hotel & Country Club in south Dublin has been acquired by the Comer Group for €7 million, according to a report in the Irish Times.

The partially built complex - on which €171.5 million from Irish Nationwide was spent - will be completed and operated by the Group.

It is estimated that a further €20 million would be required to finish the project, according to sources quoted by the Irish Times.

The property was being developed by the late Hugh O'Regan, whose property companies collapsed five years ago with overall borrowings of €198.5 million.

The sale of the Kilternan development was delayed because of fears that its offloading at a huge discount would have a depressing effect on the sale of several other distressed property assets.

The bulk of the investment will be spent on completing the 78-bedroom aparthotel and 128-bedroom hotel.

The 16,435 sq.m development also includes a large health centre, spa, banqueting hall above three floors of hotel public facilities.