GMIT interested in derelict hotel – but asking price too high
The Galway-Mayo Institute of Technology has expressed renewed interest in buying the derelict Corrib Great Southern Hotel site, which has become the target of several arson attacks.
Financial Controller Jim Fennell said the college is still “extremely interested” in buying the site, despite the high expectations of the current owners on its value.
The 6.7 acre site is owned by the Comer Group, which paid a figure believed to be just over €3.5 million. It had previously been owned by developer Gerry Barrett of Edward Holdings, who paid in the region of €30m for it in 2006.
Negotiations between GMIT and the owners broke down last year, because the Comers “had expectations well in excess of market value”.
“GMIT has a strategic interest in the site, we’ve made that clear over a number of years. That building is useless. That building is only fit for demolition. We require a brownfield site. By 2030, we expect student numbers to double at GMIT,” Mr Fennell said.
“There is a need for us to develop new facilities and so there is a need for us to engage in strategic land acquisition.
“With that in mind, we began discussions in 2010/11 with the then owners of the site, Edward Holdings, with an offer of €3.75m based on a valuation we received.
“Unfortunately, we discovered shortly thereafter that the site had been sold on to a third party.
“We engaged in discussions with representatives of the new owners in 2013. In June 2013, those negotiations ceased when it became apparent that the new owners had a price expectation well in excess of market value.
Meanwhile, contractors working on behalf of the Comer Group arrived on-site this morning to secure the premises and install an alarm system to deter vandals.
For more on this story, see today's Connacht Sentinel