Blarney buy first of many?
“I’d never looked at Blarney before last Wednesday when it was brought to my attention, and I bought it on Friday,” said the 62-year-old Newry investor. The complex had 100 inquiries after Savills slashed the price to €2.5m. Savills were appointed to sell it just five weeks ago, and conducted dozens of viewings, to parties from places as diverse as the Philippines and Texas.
It had been on the market since February 2009, with the price steadily reduced by previous agents, from a 2009 high of €20m, as the hotel (originally a Ramada), leisure centre and golf course traded through a long receivership process with PWC.
Backed by a local consortium, it cost a reported €30-40m to develop, with a 61-bed hotel with function and leisure facilities, 20m pool, a John Daly-designed golf course, and 38 two-bed guest lodges, on 160 acres near Blarney.
Mr O’Gorman has a 40-year track record in oil-and-gas exploration, “and he’s struck gold with his Blarney buy,” quipped estate agent, Denis O’Donoghue, of Savills, who declined to confirm the selling price.
According to Savills, Mr O’Gorman is one of Ireland’s most active mineral-and-gas exploration investors, associated with companies like Minmet, Glencar Minco and Pan Andean, PetroCeltic and Fastnet Oil, and he was involved in the 2012, €1.9bn sale of Cove Energy to Thai-owned PTTP, most active off the coast of East Africa.
“I don’t intend putting in a hotel operator. I’ve my own property management team to manage my portfolio,” said Mr O’Gorman, who is interested in acquiring other Irish hotels, if the price is right. “I’m not in it for a quick buck. I think I’ll get a better return by building back up its reputation, moving it forward and promoting it locally, first, and giving better service.”
Receiver, Billy O’Riordan, of Pricewaterhouse Coopers, appointed Denis O’Donoghue and Tom Barrett, of Savills. “Having traded in receivership for the past five years, this puts the business, and the 120 full- and part-time jobs at the resort, on a secure footing,” they said.
“The hotel sector in Ireland enjoyed much-improved trading conditions last year, largely driven by an increase in visitor numbers and a resurgent Irish brand, and this also signifies growing confidence in the golf resort sector,” said Mr O’Donoghue. “Cork remains one of the most popular destinations, both nationally and internationally due to the increased number of events held in the city, and longstanding attractions such as Blarney Castle.”
Details: Savills, 021-4271371.
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