Kilternan Hotel & Country Club in South Dublin, which is only partially completed, has been sold to the Comer Group at a 96-per-cent discount.
The late developer and publican Hugh O'Regan spent around €171.5 million building the hotel using loans from Anglo and Irish Nationwide before the property market collapsed and the loans were passed on to Nama and receivers were appointed.
However, Comer is believed to have acquired the property for around €7 million, which is thought to be the largest discount for an investment property since the property market collapsed.
Comer now intends to finish building the hotel and to operate it once completed. It is expected to cost around €20 million to complete the project but this figure may rise if Comer wants to take full advantage of developing the leisure facilities at Kilternan.
The property includes 300 acres of land, including a former golf course, an aparthotel and hotel and extensive spa and health facilities.
It is believed that the receivers delayed the sale due to the fear that selling the property at the large discount that was required would have an effect on the value of other distressed properties, but this is no longer a worry given the recovery in the property market.