A receiver has been appointed to the company behind plans for a €50million five-star hotel on the site of the former Connacht Laundry premises in ‘The West’ in Galway City.
National Irish Bank’s parent company Danske Bank appointed the receiver over the assets of Jaytar Limited, which is understood to have liabilities of at least €26million.
Tom Kavanagh of Kavanagh Fennell, one of the country’s leading insolvency experts, has been appointed by the bank to Jaytar, which was the vehicle used by developers Noel Burke and John Staunton to purchase the Connacht Laundry (later Connacht Court) site on Henry Street in 2006 for €30million.
Mr Kavanagh now has the power to take possession of the assets of Jaytar and to sell them, and his primary duty will be to achieve the best price possible for assets.
Unlike the liquidation process, the legal status of the company will not be affected, and it will technically continue to trade until the receivership process is completed.
Effectively, National Irish Bank now controls all the assets of Jaytar.
Noel Burke – who operates Noel Burke Developments, with a former business address in Salthill, had planned a luxury €50million hotel and leisure centre on the Henry Street site, which met with huge opposition from local residents’ groups.
The massive project for the 2.1 acre site was given the final go-ahead by An Bord Pleanála in January of this year after almost two years of delays.
The hotel, which Mr Burke previously told the Sentinel was to be based along the lines of the Ritz Carlton in Wicklow, was to have almost 130 suites, meeting rooms, leisure centre, spa and a restaurant.
It was also intended to offer a full concierge service, suites with hot-tubs and ‘sunken’ plasma TVs in walls, and the developers claimed a ‘prestigious’ hotel group had been sourced to run the property.
It would have taken between 15 and 18 months to complete and would have created up to 180 jobs, while there would have been around 150 jobs if the hotel got off the ground.
“The product is aimed at the more discerning type guest who wishes to seek out very high standard and more spacious accommodation at an affordable price. This product is currently unavailable in the marketplace at a reasonable price. In order to ensure the viability if the overall concept, the client has carried out market research which has indicated that there is a considerable niche in the marketplace for this type of hotel, particularly to cater for parents and young children,” the planning application read.
The receivership also affects a massive residential, shopping and leisure centre development, as well as the Fitzwilton Hotel in Waterford City.
Jaytar’s parent company, Noel Burke Developments, also developed residential projects in Headford and Renville, as well as in Waterford, Dundalk. It also has retail projects in Tipperary and Waterford.
Mr Kavanagh was unavailable for comment when contacted yesterday (Monday).