Business Irish

Monday 25 September 2017

Price drops to €7m for golf hotel resort

Donal Buckley

The asking price for the Blarney Golf Resort and hotel has been slashed from the €15m sought in 2009 to €7m which is now only about a quarter of the €25m-plus it originally cost to develop the Cork project.

As well as a four-star hotel, the resort comes with a trophy golf course on 168 acres and includes 38 two bedroom golf lodges.

Windward Management is currently generating more than €3m in turnover from the hotel which has 61 bedrooms including 24 executive rooms, together with a bridal suite, the Inniscarra Restaurant, Cormac's Bar, three conference and banqueting suites, a health spa with a 20-metre swimming pool and a fully equipped gym. The golf club has about 500 members.

CB Richard Ellis are the agents acting for Billy O'Riordan of PricewaterhouseCoopers, who is the receiver to The Blarney Golf Resort Limited. AIB appointed him as receiver in 2009 when it was owed €20m by the developer Kelcar Developments whose directors were Frank and Derek McCarthy.

The five year old championship 6,712 yard, par 71 golf course is the only European course designed by famous golfer John Daly.

It is located on the northern outskirts of Cork city approximately 13 kms from the city centre, and 4.5 km from Blarney village which attracts over 400,000 tourists annually to its Blarney Castle and stone as well as its Blarney Woollen Mills shop.

So the resort is well positioned to benefit from recent reports of an upturn in global golf tourism.

Paul Collins of CBRE Hotels said: "At a purchase price of €7m there is also the obvious opportunity to quickly recoup a substantial part of the purchase price by selling on some of the 38 superb holiday lodges, which are included in the sale of the entire resort."

He declined to say what similar lodges are fetching at present but it is believed that they could sell for between €50,000-€75,000 and the new owner could generate between €1.9m and €2.9m from selling them.

However, they cannot be sold as principal private residences but they could be bought as an investment as they can be let out for up to six months at a time.

The course is run as a proprietary golf club, GUI-affiliated and has potential to increase local golf memberships and to actively market the resort nationally and internationally.

Meanwhile, CBRE are also selling the Ivy Inn, Main Street Naas, Co Kildare with a guide price in excess of €500,000.

While the pub ceased trading last month, the property is generating rental income of €27,000 per annum from the upper floors currently occupied by a solicitor and a clinic. The property comprises a three-storey over basement commercial premises on a site of approximately 0.5 acres.

The pub business operated on the ground floor and basement with an extensive (56 spaces) car park to the rear.

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