Wednesday 17 January 2018

Shelbourne owners paid extra €7.1m in refurbishment costs

John Mulligan

The owners of Dublin's landmark Shelbourne Hotel -- including troubled developer Bernard McNamara (pictured right) -- injected an additional €7.1m into the company that controlled the property during 2007 after the cost of refurbishing the premises spiralled to €125m.

Mr McNamara is a shareholder in Kantaka Enterprises, the parent firm of Shelbourne Hotel Holdings (SHH), having been part of a group of eight investors who acquired the landmark property in 2004 for about €140m. They spent a further €125m -- significantly more than originally budgeted -- refurbishing the property.

Accounts just filed for SHH, for 2007, show the company had a capital deficit of almost €30m at the end of 2007, up from €14.7m in 2006, while it had term loans totalling €116m which were repayable within one to two years.

The accounts also show that Mr McNamara stuffed almost €1.2m into SHH in 2007, leaving him being owed €12.7m by the company. Of the other investors, developer Bernard Doyle stumped up a further €1.2m to bring his outstanding loans to the company to €6m. Developers David Courtney and Jerry O'Reilly each put in about €1.2m, bringing the loan balances owed to them to €6m each. Blackshore Holdings, the company owned by Galwayman John Sweeney, put another €2.35m into SHH in 2007 to bring its tally to €12.7m.

Many of the Shelbourne's owners have been struggling in the downturn.


This week, Mr McNamara was described as a person "no longer of significant wealth", as he unsuccessfully fought the granting of an order instructing him to pay €62.5m to investors involved in the purchase of the Irish Glass Bottle (IGB) site in Dublin.

Mr McNamara has said his "head is on a plate" and resigned from the company his father originally founded, Michael McNamara and Company.

A subsidiary of Blackshore Holdings, Fate Park, went into examinership last year owing creditors €17.3m. Fate Park had extended €20m in credit to Blackshore.

Last year, Barclays Bank went to the High Court seeking repayment of €9m in loans from David Courtney and Bernard Doyle. SHH was also embroiled in a legal case last year against the operator of the Shelbourne, Torriam Hotel Operating.

Irish Independent

Promoted Links

Business Newsletter

Read the leading stories from the world of Business.

Promoted Links

Also in Business