Tuam retail unit up for auction at 5% of boom time price
A prominent retail building in the centre of Tuam – bought at the height of the property boom for €1.5 million – is to go for auction next week with a reserve price of just €85,000.
That represents a whopping drop in perceived value of around 95% in the space of a decade.
The vacant three-storey building on Shop Street – once occupied by Tuam Furniture Stores operated by the Murphy family – will be sold in an online Allsop auction next Tuesday.
It is expected to attract huge interest from investors because of its prime location – bidding will open at 8am, and is set to close shortly after 5pm.
The 950 square metre premises was purchased by Michael Moran and Tom Joyce in December 2006 for €1.5m and was earmarked for redevelopment.
The property is being sold by receiver Stephen Tennant of Grant Thornton, who was appointed by Danske Bank last month.
Mr Moran and Mr Joyce – who have addresses at Taylor’s Hill and Knocknacarra in Galway – were involved in a series of property investments during the property boom and own Brooklodge Nursing Home in Tuam.
Their company, Foundary Developments Ltd, owned development land and sites in Ballybrit, Galway and in Mayo and went into liquidation in 2010, with a deficit in funds of more than €2.8 million.
Creditors were owed more than €3.7m, including €2.6m to trade creditors and more than €1m to the bank.