Developer tees up sale of share in K Club with a price tag of €60m
Published 23/04/2010 | 05:00
PROPERTY developer Gerry Gannon has attracted inquiries from prospective buyers for his half-share of the K Club despite the asking price of €60m.
The loss-making golf club comprises two 18-hole golf courses, a 64-bedroom luxury hotel and the Ryder Cup village with its clubhouse and ballroom.
Mr Gannon's asking price for his 49pc stake effectively values these properties at more than €122m.
This is €7.4m more than Mr Gannon and his business partner Dr Michael Smurfit paid near the peak of the market, not just for those properties, but also for a valuable site in Clonskeagh, Dublin.
Furthermore, Mr Gannon will retain development rights on the 560-acre estate, where he and his partners have permission to build 85 apartments and 24 townhouses.
Dr Smurfit is entitled to 25pc of the profits from any residential development in the club.
Mr Gannon also owns one of the largest development land banks in Dublin, mainly in the Clongriffin-Swords area.
He has already had loans transferred to the National Asset Management Agency (Nama), which he has also informed about the K Club sale.
He is reported to be undertaking the sale as part of his strategy of trading Gannon Developments group out of its present difficulties.
"I cannot expect the taxpayer to fund an exclusive loss-making club in Co Kildare," he is reported as saying.
The terms of any sale will have to be ratified by Nama.