Chinese businessman 'to realise dream' for Fota resort after winning ownership row

Yuzhu Kang said 'although late, justice had been done' after the four-year legal battle concluded

The settlement now effectively means that Yuzhu Kang is the owner of the Fota Island Resort.

A Chinese businessman has won his long-running High Court battle for the ownership of the luxury Fota Island Resort in Co Cork.

And as Yuzhu Kang takes over at the helm of the five-star resort and spa, he told the Irish Examiner he intends “to realise my dream for Fota that I had when I first purchased it in 2013.” Speaking through an interpreter he said he now intends to continue with Fota Island Resort and make it a leading centre for cultural activities and carry on the business in his mother’s name.

Speaking after the settlement of proceedings which had first started four years ago, Mr Kang said “although late, justice had been done”. Mr Kang, who is from Hebei province and now lives in Dublin, had claimed he invested €30 million in Irish properties, including the five-star hotel and spa in Co Cork. 

He had launched the legal action claiming an alleged conspiracy to defraud. Yuzhu Kang’s counsel Declan McGrath SC instructed by Taylor Wessing Solicitors at the opening of the action this week said the central matter in controversy in the complex case is who funded the purchase of several properties including the Cork resort, the Kingsley Hotel in Cork city centre and other properties.

At issue in the case was the alleged transfer of shares in the years that followed and Mr Kang has claimed it formed part of an alleged conspiracy to defraud him.

Settlement

The settlement was announced after two days of intense talks at the High Court. Counsel told Mr Justice Max Barrett it was on consent. It brought to an end a four-year legal battle. The action had been listed to last 12 weeks.

As part of the settlement various stock transfers have been declared null void and ineffective and Mr Kang has been declared a 100% shareholder in the company Xiu Lan Holdings Ltd of Ballincollig, Co Cork, which is the 100% shareholder Xiu Lan Riverside Hotel Ltd.

The settlement now effectively means that Mr Kang is the owner of the Fota Island Resort and the Kingsley Hotel in Cork City as well as three other properties which were in dispute.

Yuzhu Kang had sued businesswoman Xiu Xiang Kelly, who is also from the Hebei region but who lives at Fota Island Resort, Cork, and her son Tuo Du of the same address.

Mr Kang had also sued three companies — Xiu Lan Holdings Ltd and Lan Sideriver Investment Holdings Ltd, both with offices at Ballincollig, Co Cork, and Allied Express International Development Ltd with registered offices in Hong Kong.

In the proceedings, Mr Kang had claimed he agreed in 2013 to purchase Fota Island Resort which was being sold on the instructions of Nama.

He says with the assistance of Ms Kelly the company Xiu Lan Holdings was incorporated to hold the investment. Mr Kang was the 100% shareholder.

In the three years that followed, he said he made several further property acquisitions in Ireland, including the Kingsley Hotel in Cork City, and the majority of the properties were acquired and are held by subsidiaries direct or indirect of the Holdings company.

All of the claims were denied.

Mr Kang now also owns the Kingsley Hotel in Cork City.

Ms Kelly, who brought a counterclaim which has now been dismissed, had contended that she effected the purchase of the Fota Island Resort in 2013 using monies belonging to her and that she has at all times been the beneficial owner of the luxury resort.

It was claimed that Ms Kelly was anxious not to be identified with the proposed purchase of Fota Island Resort and that she used Mr Kang’s name “as a front” for her. She claimed that Mr Kang was aware and consented to his then commercial profile being adopted in the context of the Fota purchase and she was the preferred bidder. 

She claimed that the purchase money paid in respect of Fota was funded by herself and her son and third parties but not Mr Kang.

Mr Justice Barrett was told on Thursday evening there would be no order for costs which means that each side pays their own costs. The proceedings were stayed which means that on 48 hours’ notice the parties can go back to court with a view to enforcing the terms of settlement.

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