Boutique hotel for Nuns' Island in Galway
Work is expected to begin by the end of this year on a boutique hotel development at Nuns’ Island, after the project backer secured funding.
The mortgages for the two properties had been tied up for four years following the collapse of Anglo Irish Bank, and the was subsequently granted a three-year of extension of time to build. The project is set for completion in December 2015.
Geoff Canavan was granted permission in 2009 for the demolition of Numbers 26 (Canavan House) and 34 Nuns’ Island and to replace them with a three-storey office building and a three-storey boutique hotel to the rear.
“Due to economic issues beyond the control of the applicant, the development has been prevented from being commenced to date. In 2009, the then mortgage and construction funding was with Anglo Irish Bank.
“Around this time, the bank was abruptly nationalised and began to wind down to form the Irish Bank Resolution Corporation (IBRC), which was liquidated by KPMG.
“KPMG sold off the mortgages/assets (including the mortgage on the property at 26 and 34 Nuns’ Island) to a venture capital fund. During this period (2009-13), the mortgage on the property was tied into (frozen within) Anglo/IBRC and it was impossible to raise finance to progress the building works.
“In 2013, with the sale of IBRC assets, the mortgage on Nuns Island was released/sold on, which finally made it possible to source financing for the development.
“Mr Canavan has now secured funding to progress the permitted development and would anticipate to start construction works on site towards the end of 2014,” the application reads.
According to the original planning application lodged in 2008: “It consists of a redevelopment of a run-down site in the heart of Galway City. It will provide high quality office accommodation in place of the poor quality offices there at present, as well as a modern boutique hotel in place of the 1930s style house at the rear.”