Receiver sues over failure to complete Citywest sale
A receiever appointed over the Citywest hotel, conference centre and golf course development in Dublin is suing a company for alleged failure to complete the purchase of the complex.
Martin Ferris, receiver of certain Citywest assets held by HSS, Jeffel, Rattler Ltd and Citywest Resort Ltd, is seeking court orders requiring CW Hotel Investments 2013 Ltd, Wesland Square, Dublin, to complete the €28m purchase of the complex.
The case was admitted to the Commercial Court list yesterday on consent between the parties.
Mr Ferris said on October 18 last, Fadi Gemayel of Broadwalk, London, acting in trust for CW (formerly Celleron Ltd) entered into a contract with the Citywest companies to buy the property.
The price for the hotel, conference centre, its leisure centre and attached buildings and land was €26.5m and a €2.75m deposit was paid.
The golf course price was €1.5m and a 10pc deposit paid.
The contract was to close on December 11 but CW failed, refused or neglected to complete the purchase, Mr Ferris said in an affidavit.
On January 13 last, lawyers for CW wrote saying the Citywest companies were not ready to proceed, which was denied, but that they were willing to complete once certain matters were dealt with.
The companies denied there were any impediments to completion of the purchase and were not agreeable to further delay.
Mr Gemayel, for CW, then wrote suggesting a March 31, 2014, closing date, or earlier, if "all issues have been resolved".
This was not acceptable but, Mr Ferris said, the Citywest companies indicated they were willing to accept a February 28 deadline.
Despite agreeing to this new date, CW had failed to complete, Mr Ferris said.
Mr Ferris and the Citywest companies are now seeking an order requiring CW to perform the contract or damages in lieu of specific performance.
Alternatively, they seek orders forfeiting the deposits paid.