KBC bankers own Galway hotel that's on the rocks!

Mods … I didn’t post this in the hotels thread, cos I thought maybe it deserved it’s own??

Anyway, a few weeks back, there was a story a Galway paper about a hotel in Salthill closing its doors because it was “unviable” and underperforming.

galwaynews.ie/8789-underperf … apartments

It was being run by a company called Mindano Ltd., but actually owned by Bencrest Properties. I was bored at work and did a bit of digging, cos I always thought the McGranaghan family owned that entire site.

Turns out Mindano also operates the likes of the Galway Bay Golf and Country Club.

Anyway, to get to my point, the owners of the Waterfront Hotel are:

I knew I recognised at least one of those names, so a google of them threw up a lot of KBC links:

https://www.kbc.ie/Business/CorporateFinance/ContactTeam/?paraID=94
kbc.ie/pdflibrary/26_03_2009 … ?nocache=1
irishtimes.com/newspaper/fin … 53332.html
kbc.ie/Business/PropertyFina … ?paraID=30

Is it a coincidence that this place is being closed down at the same time NAMA legislation is coming into play?

Is it really closing because the Seaside Resort Tax Incentives will expire in December (as is stated in the article)?

Wonder where they got the money to buy the place?? :unamused:

P.S. They are listed as the owners of the site on the planning application (galwaycity.ie ref: 09/167), so I’m assuming they actually OWN it, as opposed to mortgaged it. I think planning regs specifies the OWNER as opposed to lender to be listed on the application form.

Interesting, a good find.

Bencrest was Incorporated in 1996, the Hotel was opened in 1998. It looks like this company was set up exclusively to finance this hotel.

How much money has KBC loaned out to its Directors ?

Indeed fishfoodie, there are quite a few companies listed here. Mega-moolah methinks:

KBC is not taking part directly in NAMA.

However, HQ will likely try to flog the Irish branch.

Could it be that the directors are holding those companies on behalf of KBC Ireland? And that the list above is in facta a list of all the companies that KBC have foreclosed on, but not yet disposed of?

Well, there have been some changes in directors since Bencrest was first registered, so ya maybe that’s it.

I suspect that KBC are calling in the staff loans as they prepare to clean the books prior to selling IIB off, anyone seen Austin ??

That would, I believe, be very dodgy ground, from a FTSE or any other exchange, point of view.

I’d be fine with our financial regulator, but then what isn’t :imp:

I can’t make out if he’s auditioning for a role as weather forecaster or economic commentator on newstalk.

kbc.ie/_mediaLib/audioCommentary.wav

Bencrest is owned by IIB bank.

Annual Return - Bencrest scribd.com/doc/20117733/Benc … ual-Return

Accounts - IIB scribd.com/doc/20117765/IIB-Accounts

Wow, I stayed there only a week ago. The room was large and had great view but was in need of refurbishment - I’m surprised it’s only been there since 1998. Service was a bit Fawlty Towers on arrival (think waldorf salad episode) but otherwise ok. Bar was pretty empty on Friday night.

Comical’s bobbing head was seen (dis)gracing last night’s six-one news.

Still KBC Chief Wreckonomist.

I know I shouldn’t be surprised anymore the shite Irish banks get up to.

But what were they thinking !?! :confused: :open_mouth: XD 8- XX

What other losses are squirrelled away off the balance sheet thru all those other subsiduary ‘Properties’ companies ?

Just to explain this as I did some nosing around. IIB were always the shareholders of the company so no it is not a reposession. In 1998 the McGranahan family through their company Cornglen Limited which owned the Salthill Land did the development.

At the time, the accelerated capital allowances on hotels (15% pa) were much more valuable to companies than they are now due to the higher rates of corporation tax. The banks at the time took a lot of the developments onto their books through sale and leasebacks so they got the capital allowances and offered a cheap rent to the promoters with a buyout at the end of the tax period. It wasnt really cheap as the value of the capital allowances made the financing expensive. The Cornglen accounts are a small company so they dont disclose the sale and leaseback transaction but that it what I would think happened.

The idea was that the company would retain profits to allow a significant chunk of equity when the deal needed to be refinanced. So no, the KBC bankers dont own it but IIB will if the promoters cant afford to do the buyback.

The very best kind of business transaction; each thinks they can lose & just what ? They’re both right, 'cause its only the taxpayer gets shafted.

The irony of the banks all selling off their branches to developers to build shite, & now the shite is built there’s a good chance the banks will end up owning them all again.

Thanks grumpy