PROPERTY developer Paddy Kearney, one of the so-called Maple 10 investors, is back in business and splashing the cash in Belfast.
His media advisers finally confirmed yesterday that Kearney's Kilmona Holdings has completed a deal - widely speculated in the Irish News - to buy Belfast boutique hotel Ten Square and two adjoining buildings out of administration.
He has immediately unveiled plans to spend £5 million extending and revamping the premises, originally opened in 2000 and which occupies a grade one listed building at Donegall Square South.
The property had previously been owned by high-profile property developer John Miskelly, but was forced into administration by Cerberus earlier this year with creditors owned more than £4 million.
It is unclear how much Kearney paid for the portfolio of properties.
But the Irish News understands that earlier this summer a cash bid of £4m for Ten Square was turned down by joint administrators Andrew Dolliver and Luke Charleton of EY.
Kilmona Holdings, in a statement issued through its public relations firm, said the extension plans (Ten Square will grow to a 71-bed hotel) - which are subject to a change of use planning application for the office building Lancashire House next door on Linenhall Street - will bring a £3m investment creating 20 new jobs at the hotel.
This is in addition to a £1.5m refurbishment to the main building which is currently under way by Kilmona.
Patrick Kearney, who is managing director of Kilmona Holdings, said through his PR firm: “Ten Square has been a landmark in Belfast city centre for many years, but increasing numbers of tourists and a more competitive hotel market mean it’s time to invest in the future.
"We now have an excellent management team in place and the ability and willingness to revamp and expand the hotel with at least a £5 million capital programme over the next 12 months, in addition to our recent purchase.
"This first application to create a new bedroom block at Lancashire House is just the start because we have even more ambitious plans to expand further which we will be revealing in the near future.”
Stephen Perry, the newly-appointed general manager who is overseeing the hotel’s revamp, said: “The current works include a total refurbishment of the existing hotel – from entirely new kitchens to a re-modelling of our front of house.
“Our events suite will also have an increased capacity for up to 250 guests and this will allow us to widen our reach for seminars and conferences. We remain open for business and we will have all works complete by November 7, well in advance of the busy Christmas season."
The hotel reported sales of just under £1.7m in the first half of this year, and in March administrators at EY confirmed a number of redundancies from the hotel’s 84 staff.
Ten Square was bought by John Miskelly from Galgorm Resort owners the Hill brothers for £10m in 2008. It was put into administration earlier this year with creditors said to be owed £4m.
Paddy Kearney was one of 10 property developers who bought shares in Anglo Irish Bank during the financial crisis in 2008 under a deal to slash Fermanagh businessman Sean Quinn’s stake in the lender.
At the time he owned PBN Holdings, which specialised in developing residential and retail complexes and whose projects including high-profile shopping centres in Belfast and Glasgow.
