Nama sells 'exclusive' €1m homes for one-tenth of their boom price
A development of €1m houses that was billed as "exclusive" but never completed and ended up in Nama has been sold for a fraction of its original price.
The Shelbourne Square site on Limerick's sought-after North Circular Road was bought for some €4m during the boom.
It was earmarked for 11 houses that would sell for €1m a piece, but now Nama has sold the entire development to a Cork businessman for €1m.
The site had been on the market since 2011, but has finally sold for €1.1m through Rooney's and Pat Chesser auctioneers in the city.
The sale was listed on the Property Price Register as selling on June 25, and is the only listing to break the €1m mark in Limerick this year.
"The original developers were unlucky with the timing of the economic crash, as they had sales agreed for three of the houses for €1m each. But then they went into receivership," said a source.
The development comprises 11 town houses set out in two blocks of four and one of three.
The houses are in different stages of completion, and comprise four two-storey houses covering 2,200 sq ft, and seven three-storey houses encompassing 2,400 sq ft over a basement car park.
It is understood that planning for the site has expired and the new owners will have to apply for retention of the current planning or look for new planning and demolish the site.
The development was placed in receivership in January 2009, with Ernst and Young appointed by Anglo Irish Bank as receivers.
It was later placed on the list of properties subject to enforcement by Nama.
Developers Mike Gavin, Seamus Jennings and Gerard McCarthy were behind the original development.
A number of residents in the area have repeatedly complained that the site has been allowed to decay over the years, and has given rise to vandalism and anti-social behaviour.