Citywest receiver sues to finish sale

A receiver 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, wants orders requiring CW Hotel Investments 2013 Ltd, of Westland Square, Dublin, to complete the €28m purchase of the complex.

The case was transferred to the Commercial Court yesterday by Mr Justice Peter Kelly on consent of the parties. He made directions for exchange of legal documents and returned the matter to May.

Mr Ferris said that, on October 18, Fadi Gemayel, acting in trust for CW, entered into a contract with the Citywest companies to buy the property. The price for the hotel, conference centre, 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 10% deposit was paid.

The contract was to close on December 11 but CW failed, refused, or neglected to complete the purchase, Mr Ferris said.

In January, CW lawyers said 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 closing date or earlier if “all issues have been resolved”.

This was not acceptable but the Citywest companies indicated they were willing to accept a February 28 deadline.

Despite agreeing to this, CW had failed to complete, Mr Ferris said.

Mr Ferris and the Citywest companies now seek an order requiring CW to perform the contract or damages in lieu of specific performance. Alternatively, they seek orders forfeiting the deposits.