River Lee Hotel on offer for €25m
The sale, offered to the investment market on about an 8% return, was developed on the five-acre riverside site near UCC, along with 150 apartments. The site was acquired back in 2004 for €45m, earmarked initially for a €140m redevelopment, to include 250 apartments. Now it is home to the Lancaster Quay apartment scheme, with a remaining undeveloped portion where planning was refused by An Bord Pleanala for an €80m private hospital.
O’Callaghan Properties this week confirmed its plan to sell off their long-term investment hotel asset, with 29 years left on its CPI-linked, upwards only 35-year lease.
Operators PV Doyle Hotels are paying €2.04m pa for the hotel, which initially traded as a Jurys when rebuilt.
Selling agent for the investment is Savills, and Cork director Peter O’Meara said there was an appetite for such a clean hotel investment from international and indigenous investors, as well as investment funds.
According to OCP, “there’s an appetite in the market at present for good quality investments — new property, well let with long leases and good covenants. The River Lee hotel investment does not represent a core asset for our company and we have decided to extract value from it now rather than over the remaining 29 years of the lease.”
The price level for the River Lee Hotel investment equates to the original price guide for another Cork hotel offering, now being sold by Cohalan Downing and Colliers for close to €20m as a business. The Fota Island Resort, on 500 acres, is very close to sale terms with bidding having come from international interests as well as Irish consortia linked to the likes of golfer John McHenry.
River Lee hotel developers O’Callaghan Properties had also planned a major hotel at its Mahon Point scheme in Cork, and developed hotels in other locations such as its massive Liffey Valley complex in Dublin.
Details Savills: 021-4271371
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