AN ‘EXCLUSIVE’ housing development in Limerick city - where 11 houses were once pitched for €1m apiece - has been sold in its entirety by Nama for just over €1m.
The site of Shelbourne Square on the North Circular Road, which is partially built, was bought for some €4m during the boom.
But under Nama’s instructions, following the appointment of a receiver, the development went up for sale in 2011.
It has finally sold for €1,103,000, via Rooney’s and Pat Chesser auctioneers in the city, after previous failed attempts to sell the site. The sale was listed on the Property Price Register, selling on June 25, and of the 823 houses which have sold to date in Limerick this year it is the only listing to break the €1m mark.
Developers Mike Gavin, Seamus Jennings and Gerard McCarthy were behind the development in the much sought after area of Limerick, with the former posing for pictures with the brochure many years ago before the boom went bust. However, a number of their companies, including Crossfields Investments Ltd and Glentworth Properties Ltd, were dissolved in 2011.
The latter company was listed as having some 20 employees up to 2007, including 15 in construction, and had work in progress to the value of €3m.
“The original developers were unlucky with the timing of the economic crash, as they had sales agreed for three of the houses for €1m each and then they went into receivership,” explained a source.
It is understood that planning for the site, which has been bought by a developer from Cork, has lapsed and they will have to apply for retention of the current planning or look for new planning and demolish the current site.
The development was placed in receivership in January 2009, with Ernst and Young appointed by Anglo Irish Bank as receivers. It was subsequently placed on the list of properties subject to enforcement by the National Asset Management Agency.
A number of residents in the area have repeatedly complained that the site has been allowed to decay over the years, and has given rise to vandalism and anti-social behaviour.
A previous sale was secured for the site in 2011, but subsequently fell through.
The development comprises 11 town houses set out in two blocks of four and one of three. The houses are in different stages of completion, and comprise four two-storey houses, covering 2,200 sq ft, and seven three-storey houses, encompassing 2,400 sq ft over a basement car park.