Tuam’s attractiveness as a location for property investors will be put under the spotlight next week when a US vulture fund auctions off a large apartment and retail development in the town.
The Lár na Cathrach development at Abbey Trinity will be sold in an Allsop Private internet-only auction next Tuesday, and is going to the market with a reserve price range of €1.2m to €1.3m.
Risali Ltd – an Irish arm of the New York private equity firm Apollo Global Management – purchased the loans of DHB Holdings Ltd in December 2012 from Bank of Scotland (Ireland), and appointed receivers to the property in May 2015.
The fund is now offloading the portfolio at Chapel Lane and Egan Lane.
The portfolio was purchased by the vulture fund at a knock-down price which has not been disclosed – DHB Holdings purchased the property from its subsidiary DH Burke & Son Ltd in January 2003 for just under €1.4 million.
While the sale price for the Lár na Cathrach loans is unknown, it was part of the ‘Project Lane’ loan book of more than 500 properties (owned by a variety of investors/developers), which sold at a 90% discount to Risali Ltd.
The building contains 62 parking spaces in the basement, a total of 13 ground floor retail units (where Lumberjacks Pizza is currently an anchor tenant); part of the first floor commercial space used as a restaurant, and 14 duplex two-bed apartments and six single-storey two-bed apartments on the second and third floors.
The vacant commercial element of the building is finished to shell and core only.
Two of the retail units and the first floor restaurants are leased on short-term tenancies with a cumulative rent of €41,600 per annum, while 19 of the apartments are occupied – including eleven corporate lets to Valeo Vision Systems. The gross residential income is €117,900 per annum.
Bidding in the online auction will commence next Tuesday at 8am, and is scheduled to finish shortly after 9.30am.
Although the price paid by the vulture fund for this particular DHB Holdings portfolio – held against mortgages and securities from Bank of Scotland (Ireland) – is confidential, documents filed with the Companies Registration Office by receivers Eamonn Richardson and Kieran Wallace of KPMG showed an estimated value in 2012 of €5.2 million.
As well as Lár na Cathrach, that DHB portfolio included property at Mellows House and Chapel Lane in Tuam; 15 acres in Milltown; land and premises at Baylough in Athlone; industrial units near Dublin Airport and a three-storey office building in Smithfield, Dublin.
Bank of Scotland (Ireland) moved on the empire owned by Kevin Burke from Tuam and Marie Burke from Dublin in 2012 – at the time, it was one of the biggest property groups in the West of Ireland, but had debts of more than €80 million.
The property empire spanned industrial, hotel, commercial, residential and shopping centre interests in Ireland, the UK, Poland, Sweden and Portugal.
DHB Holdings also owns DHB Construction, DH Burke Sweden AB and D.H. Burke Portugal, as well as controlling shares in Grupo Eko Plus, Limeryk Investments and Amigo Investments in Poland.
DH Burke and Son owns, or has controlling shares, in Bontex Ltd, Fortress Properties Ltd and DH Burke (UK) Ltd.
The empire was founded by the late Progressive Democrat councillor Joe Burke, who was best known as the face of DH Burke Supermarkets, which he sold a number of years before he passed away in 2001.
First pub in County Galway to be convicted over Covid breach
A County Galway publican has become the first in the county convicted of breaching Covid-19 regulations after 70 customers were found on his premises during the partial lockdown last year.
Tuam Court was told that when the Gardaí entered the premises at Tierney’s of Foxhall, there was very little social distancing – and no food being served, as was the requirement at the time.
Proprietor Tom Kelly was prosecuted for the breach of Covid-19 regulations which carries a maximum penalty of €5,000.
After Judge James Faughnan was informed that it was an extremely large premises in rural North Galway, he remarked that when so many people are allowed into a pub, no matter how big, it is extremely difficult to control them.
Prosecuting Sergeant Christy Browne explained that several months ago there had been opposition for the renewal of the publican’s licence on the grounds of alleged breaches of Covid regulations.
He said that, on August 30 last, there were 70 people on the premises, at a time during the pandemic when there was the requirement to purchase a €9 meal before being served a drink.
Sergeant Browne explained that when the premises was inspected, there was no social distancing, there was no food being served and no evidence of food receipts.
Defending solicitor Gearoid Geraghty said that his client ran a huge premises that can accommodate 227 customers and added that his customers were spread among three separate sections of the premises.
While there have been objections to the renewal of publicans’ licences by the Gardaí for breaches of the guidelines, this was the first criminal prosecution that has taken place in County Galway.
Tom Kelly with an address of Corohan, Tuam, the proprietor of Tierney’s of Foxhall, was charged with breaching a regulation to prevent, limit, minimise or slow the spread of Covid-19. It relates to an alleged breach that occurred on August 30 last year.
The same defendant had been the subject of an objection to his licence by Garda Inspector John Dunne a number of months ago. He was ordered to pay €500 towards a charity at the time.
The Inspector had opposed the renewal of the licences for what he said were breaches of Covid guidelines during the course of inspections carried out when the situation was relaxed during the course of 2020.
Galway recycling company run by Travellers fronts national campaign
A Galway company which employs Travellers to recycle mattresses and wooden furniture has been picked to front a national campaign urging the public to support their local social enterprises which are seen as crucial in the post-Covid recovery.
Bounce Back Recycling has this month also been nominated for top green company in the country.
Social enterprises are businesses that operate mainly to improve people’s lives and achieve a social or environmental impact. While they trade in goods and services like other businesses, the difference is they reinvest their profits to achieve core social objectives.
Bounce Back Recycling provides a mattress and furniture recycling service to domestic and commercial clients as well as several local authorities from its base in Ballybane.
There are currently twelve members of the Traveller community who manage and run the social enterprise, with plans to employ a further four workers as it expands.
Workers deconstruct the mattresses and furniture by hand, a labour intensive and time-consuming process.
The steel from mattresses is sold on to a local steel recycling company while the foam is sent to a UK company to make carpet underlay. The textile or covering is compressed and sent to landfill.
Manager Martin Ward explains that between 75 and 80 per cent of the mattress is recycled.
Mattresses that normally end up in the landfill only start to decompose after 15 years – elements such as polyurethane foam and steel springs can take up to 100 years and 50 years respectively to break down.
Since 2017, the company has diverted 50,000 mattresses from landfill.
“In Galway we dispose of 30,000 mattresses annually and they’re going to landfill through a waste company or are illegally dumped. We identified a gap in the market for Connacht and Ulster as there was nobody recycling mattresses here,” he reveals.
The company received funding to set up but is dependent on users to cover ongoing costs such as wages.
It started off with 3,000 items in its first year collecting from around Galway. Last year it processed 20,000 pieces, operating across ten counties, with plans to expand nationwide. They are also preparing to open a unit in Sandy Road where they will upcycle and reupholster furniture and sell directly to the public.
“We’re happy to be part of this ‘The Future is Social’ campaign by Rethink Ireland to support social enterprises which deliver so many other positive impacts for every euro spent.
“Everyone is much more aware of doing their bit for the environment and we hope to be recycling 100,000 items by 2025,” says Martin.
Bounce Back Recycling charges between €15 and €25 for a mattress and €10 for collection.
“We run a collection service and only charge one delivery fee, regardless if it’s one or ten items. We’ve a big demand in Connemara because there is no civic amenity site so people who want to do the right thing for the environment don’t have any access to a facility.”
Bounce Back Recycling has been nominated as a finalist in the Green NGO (Non Government Organisation) of the Year.
It is among 40 companies which have received money from the Social Enterprise Development Fund. Nationally they employ 500 people, mainly from minority groups, generating €22 million in turnover.
The ‘Future is social’ campaign will provide regional webinars, information and resources about social enterprises.
Headford’s plans for public park and gardens
Plans to create a new public park and gardens in the heart of Headford were unveiled this week.
Headford Community Garden and Headford Men’s Shed have submitted a proposal to the Headford Development Association to create the park on the lands adjacent to their gardens in Balrickard.
A rewilded, multi-habitat park would transform outdoor living in the town and provide a much-needed greenspace that would be accessible to all – offering a relaxing setting for all ages and abilities.
The promoters also hope that the project would act as a model for other Irish towns, with Headford becoming a leading example of how parkland and greenspace can help to revitalise rural settlements.
“This proposal for a park and gardens in Headford will create a quiet natural space in the centre of town for all to access and enjoy. It is a project that will benefit the people and the businesses of the town and surrounding areas for generations to come,” said Aengus McMahon, spokesperson for Headford Park and Gardens.
Within the park the emphasis will be on biodiversity; the planting of native trees, introduction of biodiverse meadow spaces with mown paths, walking trails, picnic and play areas.
The existing gardens and new parkland will serve as an outdoor classroom for use by local schools.
There are existing plans for Presentation College Headord’s Seomra Seoda to utilise Headford Community Garden for outdoor classes. The park will be fully inclusive and accessible to all.
The space will also include an outdoor cultural space for concerts, theatre shows and special events.
“During the Covid lockdowns, it was our walks in the rural countryside and wild landscapes that provided therapy for both mind and body,” said Brendan Smith of the Galway National Park City initiative.
“So, in a post Covid world it is important that, for the health of human society and of the planet, we integrate green and blue spaces into the fabric of our cities, towns and villages,” he added.
Recently Galway’s County Councillors unanimously supported a proposal to fund a feasibility study to examine the development potential of a cycleway and greenway from the Galway city to Headford. The park would be the perfect landing site for a future greenway.
Groups already sharing the existing garden area include Tidy Towns, environmental groups, Scouts, Headford Lace Project, Yarn Bombers, Meals on Wheels and Ability West.