A HOUSING SITE of over 16 acres going for sale at a key location in Castleknock, Dublin 15, will be one of the first significant tests of how much development land values have fallen in the outer suburbs since the market collapsed in 2008.
Diswellstown House, a large 17th century mansion and its extensive grounds, are expected to make in excess of €10 million – a long way from the € 25 million-plus paid for it in September, 2005, by Redquartz Boundary, a company controlled by Niall McFadden and Paddy Kelly, who later syndicated it out to a group of private investors. The purchase was funded by Bank of Ireland.
David Carson, who has been appointed receiver to Redquartz Boundary, is to invite offers for an outright sale but if he does not secure a satisfactory price he is prepared to embark on a joint venture with a housing developer.
The Castleknock site is acknowledged as one of the best located development opportunities in the Castleknock area to have come on the market in the past decade. It is located opposite the relatively new Castleknock Hotel and golf course at Somerton.
Jeremy Kelly of estate agent Kelly Walsh says the second option seems the most likely outcome and would involve a builder funding the development and paying a pre-agreed fee to the receiver for each of the housing sites when the sales are closed.
Before that, the builder would have to lodge a new planning application for houses only in order to maximise the overall value of the land.
Redquartz secured planning permission at the end of 2007 for 158 housing units of which 96 were apartments. It is now conceded that there will be little or no demand for apartments in the outer suburbs for the foreseeable future because of the number of unsold units still overhanging the market. First-time buyers have once again resorted to the traditional starter homes – three-bed semis – and the expectation is that the existing stock will run out sooner than expected, particularly in fashionable areas like Castleknock.
Diswellstown House is likely to continue to be used as a private home. It stands on extensive gardens and is listed for preservation along with its handsome entrance.
The two-storey house, formerly owned by a Scottish family, the Kennans, has a number of outstanding reception rooms including a drawingroom, diningroom, music room and function room. It also has six bedrooms and six bathrooms.
