An American businessman has paid £3,110,000 at auction for Slevoir, a large Victorian Italianate mansion on 100 acres along the shores of Lough Derg, near Terryglass, Co Tipperary.

The joint selling agents, Gunne and The Property Shop, had been quoting a guideline price of £1.7 million when the estate first went on the market in May. There were three bidders for the property, which has been owned for the past 12 years by a German company. Bidding opened at £1 million and though it was declared on the market at £2 million, auctioneer Charles Smith managed to keep the bidding going until Slevoir was finally knocked down at £3,110,000.

The under-bidder is understood to have been an Irish businessman.

The 19th century house is particularly spacious with six reception rooms and 11 bedrooms. It stands on outstanding formal gardens in a magnificent lakeside setting beside Terryglass village. The entrance hall has a double-height ceiling and galleried landing in an unusually tall campanile tower. Most of the reception rooms are focused on the lake, none more so than the drawing room, which is almost 30 ft by 24 ft. It has a polished oak floor and an attractive fireplace with carved timber surround. There are double doors leading into the morning room, which has particularly fine plasterwork. Off the hall, there is also a striking ante-room, which leads to the dining room.

The house has an excellent kitchen complete with the customary Aga cooker.

Slevoir was built in 1870 by Lt Col JF Hickie and remained in the ownership of his family until 1950, when it was bought as a novitiate by the Salesian Sisters.

It was sold 17 years ago to the German company and successfully turned back into a private residence.

The house has superb grounds, including well-kept lawns and beautiful parkland which runs through ancient timber to the lake. The grounds also include a large stable yard with stone-faced outbuildings, a staff bungalow, an old boathouse in need of repair and a walled garden which is still cultivated.