Tuesday, August 12 12:33:43
The half-built Kilternan Hotel and Country Club in south Dublin has been acquired by the Comer Group for E7m - 96pc less than what was spent on it, according to a report in the Irish Times.
The partially built complex - on which E171.5 million from Irish Nationwide was spent - will be completed and operated by the Group.
It's estimated that a further E20 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 E198.5 million.
The sale of the Kilternan development was delayed because of fears that its offloading would 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.
About half of the E20 million likely to be spent on the buildings will be used to complete a 78-bedroom aparthotel. Substantial funds will also have to spent on the completion of the 128-bedroom hotel.
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