Vulture fund sells off guesthouse at auction

A former guesthouse and restaurant property in Knocknacarra has been sold at auction for more than €580,000 by a controversial US vulture fund.

The Southern Hills Guesthouse and former Chinese restaurant opposite the derelict Spinnaker Hotel was placed for sale last month with a reserve price range of €440,000 to €460,000.

The Allsop Ireland internet-only auction attracted three bidders – it opened at €450,000 and 40 minutes later, bidding closed at €581,000.

The property was sold by an Irish arm of Cerberus – the private equity fund which was the subject of a Dáil Public Accounts Committee probe into loan books purchased from NAMA – called Promontoria (Arrow) Ltd.

It had been owned by developer Donal O’Connor, but the loans were transferred to NAMA which subsequently sold them to Cerberus.