Real Estate Alliance
Group Purchase of Holiday Homes
Group Purchase of Holiday
Homes John O'Neill, REA Celtic Properties, Bantry, Co Cork
Mountain View Holiday Homes (Resort Tax Relief Scheme) were launched on the market at the end of 2007.
23 homes in total and Leisure Centre.
None were sold on the open market.
In October 2009 Anglo Irish Bank appointed a Receiver to 14 of the homes together with the Leisure Centre.
The Receiver Richard Maguire of O’Donovan Caulfield Lavin, Chartered Accountants, Limerick advertised the 14 homes and Leisure Centre for sale for €1.4 million. Sherry Fitzgerald Coghlan, Killarney were initially instructed to sell for Anglo. To my knowledge two failed attempts were made to purchase.
During the past 2 years the properties were mostly unoccupied. The Leisure Centre was beginning to deteriorate. An exceptionally large flood damaged the protective stone wall of the raft foundation of the Leisure Centre. The Leisure Centre is built on the bank of a stream.
On or about June of last year I was aware a few people had an interest in purchasing a unit in the development. In early July I had a chat with Finny McSweeney a local resident who had previously commented on the potential dereliction of the complex. Mr McSweeney is a part-time lecturer in the department of International Law in U.C.C. He relocated to Glengarriff in 2006. He purchased his property through Celtic Properties.
By the end of July between us we reckoned we had 7 potential purchasers.
We identified the obvious problems – some units unfinished, some unfurnished, bad local perception, unfinished Leisure Centre deteriorating rapidly.
We put our heads together targeted potential purchasers e.g. people consistently holidaying in the Glengarriff area and/or people who had recently retired or were about to do so, Country Members of the Golf Club etc. By the first 2 weeks of August we had 14 potential buyers and 6 on a waiting list.
We called the initial meeting of the group.
A group purchase/Consortium was formed. All agreed to use the same Solicitor, Engineer/Surveyor, Project Manager & Builder. The Group then made a formal offer subject to contract which was accepted by the Receiver.
In addition to the purchase price agreed with the Receiver each member paid an equal sum into the “essential repairs fund”. The said fund also included figure for payment of legal and survey fees.
The group purchase proceeded to the stage were Finny McSweeney signed the contract in mid November as agent for 13 other disclosed principals. Each group member received Title Deeds to their individual home.
Working closely with the Receiver the sale was concluded on the 16th of December. Between the signing of the contract in mid November and the closing date “essential repairs” were carried out to the 14 homes and each was furnished and finished to a similar standard.
Mountain View Consortium Ltd was incorporated as a not for profit company (legal entity) to take ownership of the Leisure Centre. All 14 purchasers are members of the company. The use of the Leisure Centre will be changed to community use. Encouraging discussions have taken place with Cork County Council re same.
Conclusions:
I feel this type of purchase in similarly appropriate circumstances and locations can be repeated.
An understanding of planning regulations, liability and other issues related to Receiver contracts is required.
Attention must be paid to timing regarding clearance of funds (e.g. 5 days to clear a bank draft), cash flow requirements, establishment of legal entities if appropriate (e.g. Limited company, cooperative).
A committed leader who commands confidence of the group is required.
Continuous communication/high transparency at all times.
Composition of group must be such that harmonious relationships can be sustained throughout the process.
Our Clients
- ACC Bank
- AIB Corporate Banking
- Albany Homes
- Andrews Construction
- Anglo Irish
- Apache
- Athlone town council
- BEM Developements
- BRIDGESHAW HOLDINGS,
- Bagel Bar
- Ballymote Construction
- Bank of Ireland Ltd
- Bank of Scotland
- Bannbrook Properties
- Barcoro
- Bellisle Properties
- Blackstairs Development
- Blue Rock Properties
- Boyle Sports
- Briody Developments
- Broadway Builders
- Brosnan Brothers
- Burgrove
- C.I.E Group
- CPR Construction Coolaney
- Carey Group
- Carmethen Construction
- Castlekeel
- Castleregan Developments
- Chartered City Developments
- Clare County Council
- Cloughjordan Construction
- Coille Teoranta
- Comac Developments
- Conshan
- Cooney
- Corbett Construction
- Corramore Construction Limited
- Cusack Homes
- D4U
- Daisyhill Properties
- David Lowe Construction
- Deane Homes
- Department of Defence
- Des Foley & Sons
- Devondale?Developments
- Dolcetto
- Dun Ri Developments
- Durkan Homes
- Dwyer Properties
- EBS Building Society
- ESB
- Earls construction?
- Eatonvale
- Eircom
- Ellier Developments
- Emdan Developments
- Ennis Town Council
- Enterprise Ireland.
- Fairview Construction
- Fingal County Council
- First Active
- Flancare
- Four Star
- Franciscan Order
- G4s
- Galvin Construction
- Galvin Developments
- Gamestop
- Gannon Homes
- Garryduff Developments
- Gerry Flanagan Construction
- Glenkerrin Group
- Granabbey Construction
- H & M. Construction
- HSE
- Halifax
- Headfort Properties
- Henry Haverty
- High Park developments
- Hollyview
- ICS Building Soc
- IDA
- IFA
- IIB Bank
- Inch Environmental Construction
- Irish Credit Unions
- Irish Franciscans O.F.M
- Irish Life
- Irish Nationwide BS
- J.P. O?Connor Construction
- JMP Conctruction Navan
- Jas Farrell
- Jas Millar Developments
- K A DEVELOPMENTS
- KBC Homeloans
- Keelagh Homes
- Keelagh Homes, Cavan
- Keelgrove Construction
- Keenaghan Developments
- Kells Town Council
- Kelmac Developments
- Kerry County Council
- Keyline Construction
- Kilclare Developments
- Kildare County Council for valuations
- Kilkenny County Council
- Killarney UDC
- Kilrush Town Council
- L DREW CONSTRCTION
- LAVELLE & MCALINDEN
- LYNDONBARRY
- Laighne Developments
- Laois County Council
- Leitrim County Council
- Lifestyle
- Longford County Council
- Loughcourt Ashbourne
- MANLEY CONSTRUCTION
- MCALEER &? RUSHE
- MELLVIEW DEVELOPMENTS
- Malibu Properties
- Manley Homes
- Maplewood Homes
- Martanellie Property
- Masonbrook Holdings
- Mc Cabe Builders
- McCarthy Brothers
- McDonovan Developments
- McGauran & Cassidy
- McInerney Construction
- Meath County Council
- Merlon Developments
- Mollaghan Homes
- Monaco Properties
- Moreilli's
- Moriarty Group
- Moylan & McLoughlin Construction
- Mullen Developments
- Murtagh McHugh Developments
- Mycete Homes
- Mythen Construction
- N.J. Doyne Construction
- National Irish Bank
- Navan Town Council
- Nenagh Town Council
- New Dawn Developments
- North Tipperary County Council
- North West Investments
- O?Mahony Developments
- OPW
- Osprey Properties
- Oysterhomes
- P. Elliot
- PSD Developments
- Paddy Power
- Pallas Derg Properties
- Pat Foley
- Peak Properties
- Permanent TSB
- Pierse Construction
- Pinnacle Environmental
- Pinnacle Homes
- Private Rented Tenancies Board
- RCB (Representative Church Body)
- Ravenhill Developments
- Redmore Developments
- Rios Properties
- RoscommonCounty council
- Rosminian Order
- Rossvale Construction
- Rydoc Construction
- Ryefort Coustruction
- SOL HOLDINGS
- Scotia Properties
- Seamer Developments
- Seamus Durack
- Sean Kelly builders
- Shannon Development Ltd
- Sisters of Mercy
- Sisters of Saint John of God
- Skyco
- Sligo Corporation
- Sligo County Council
- Smiths Road Development
- South Dublin County Council
- South Eastern Construction
- South Eastern Tilt Up
- Spar
- St. Finians Diocesan Trust
- St. Mels Diocesan Trust
- Sundays Well Properties
- Supermac
- T+M Construction
- TRD Development, Straboe
- The Naus Group
- The Queally Group
- Thoval Properties
- Townmore Construction
- Tralee Town Council
- Trudo Construction, Kildare
- Tubrid Beg Construction
- Ulster Bank
- WDK Construction
- Walthill Properties, Dublin
- Wards of Court
- Westbury Developments
- Westmeath county council
- Willlowford Developments
- Willowbrdge Develpments
- Windmill Dev. Navan
- Winsac
Latest news & comments
TWO FARMS SOLD FOR €1,000,000 by REA Coonan
REA Coonan Maynooth and Celbridge have recently completed the sale of 2 farms, 1 in Co. Meath and... ...more
> Read our news blogSite designed by World Archipelago and developed by morsolutions
