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The National Asset Management Agency (NAMA) has sold a London development, which had been owned by Seamus Ross's Menolly Investments, at a profit.
International investment company Invesco has bought the property, known as 107 Cheapside, for £124.4m (€149m). This was about £4m higher than the price quoted by agents CBRE last September. It is expected that the proceeds will cover all the debt owed to NAMA.
Menolly paid about £150m for the property when it bought it in 2006. At the time, Menolly agreed to pay the money in a forward-funding transaction. The deal also involved the separate purchase of an adjoining mixed-use building, at No 2 Honey Lane, for almost £12m. This was Menolly's first investment in the City of London and was backed by Bank of Ireland.
Including both offices and shops, the Cheapside building is let to 13 tenants and generates about €9m a year in rent so the yield for the new buyer works out at about 5.5pc.
A spokesman for Invesco said that Cheapside was considered to be one of the City of London's most sought after office and retail locations.
Mr Ross was one of Dublin's most prolific home builders and he also owns two hotels, including the Dylan off Baggot Street in the capital.
One of his housing developments in north Dublin became a matter of legal dispute when it was discovered pyrite stones used in the building of the houses caused walls to crack.
In 2006, the Longford native expanded internationally by snapping up two prime sites in the UNESCO World Heritage-protected Kotor Bay in Montenegro.
The Cheapside building had been vacant for some time after the collapse of London property values and cutbacks in international investment. Since then, values have plummeted and occupier confidence has evaporated.
Now CBRE says London's main financial district has enough empty offices to hold two-thirds of Canary Wharf. A fifth of all City offices may be vacant next year.
"We're in the eye of the storm," Bryan Higgins, chief investment officer of Menolly Group, said. "Supply way exceeds demand."
In February, Menolly took Carlyle Group, which was refurbishing the property, to the High Court because it disputes the issuing of a certificate of practical completion.
Last week Menolly dropped its Court of Appeal action, which followed the High Court ruling in Carlyle's favour.
Irish Independent
