Blarney slashes asking price by two thirds
An Irish golf resort that was put up for sale at the start of the recession for more than £16 million, and has since failed to attract a buyer, has reduced its asking price to £5.5 million.
Blarney Golf Resort in County Cork, which features a par 71 golf course designed by John Daly, a four-star hotel including a spa and 38 golf lodges, was put up for sale just one week after Lehman Brothers collapsed in 2008, which signalled the start of Europe’s current financial difficulties.
Even then the resort’s asking price was at a loss for the developers, as the club cost more than £20 million to build between 2004 and 2006. It was placed in receivership in 2009 owing debts of more than £15 million.
The hotel does generate about £2.5 million per year in turnover and the club has over 500 members – more than three times the figure when it was put up for sale in 2008.
CBRE Hotels is selling the resort on behalf of the receiver, PwC. Its spokesman, Paul Collins, said: “While the resort continues to trade well in line with a recently-completed three-year strategic plan, the guideline price has been further reduced to reflect the feedback we’ve been getting from the market on the resort’s probable market value, given the current economic conditions.
“The total development costs of the resort to date are well in excess of £20 million and, at this reduced price, the opportunity now exists to purchase this excellent property at a very significant discount to its original overall development cost.
“At this purchase price there is 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.”