Golfer Nick Faldo made "low profile" visits to Bartragh Island, off the Co Mayo coast, when he was contemplating buying the island and building a golf links there, the High Court was told yesterday.
There was an option on his behalf to buy the island outright for €800,000, with an additional €400,000-plus if planning permission was secured for the golf course, Mr Seán Simon, who owned the island for a period in the mid-1990s, told the court.
Mr Simon, who lives in Carrick-on-Shannon, Co Leitrim, said he bought the island from the Irish Permanent Building Society for €290,000 in May 1997. The Irish Permanent had decided to sell it when a previous owner, Ms Mary Molloy, defaulted on repayments to the society.
Ms Molloy, with addresses in Killala, Co Mayo, and London, has brought High Court proceedings against Mr Simon, claiming specific performance of an agreement in November 1996, in which she claims Mr Simon agreed to give her an option to buy back the island. Mr Simon says Ms Molloy had 90 days to exercise the option and failed to do so within the period. He claims he was therefore entitled to sell it and that, after payment of all expenses and outgoings, the remainder would be divided, with 80 per cent going to him and 20 per cent to Ms Molloy.
Yesterday, Mr Simon said he had been a singer in London during the years 1985-1990. On May 2nd, 1997, he became owner of Bartragh, which contained a run-down house. He had a soil sample done which confirmed it was links land.
His close friend, a professional golfer, Mr Mel Flanagan, had contacted Mr Faldo's company in London. Mr Faldo visited a couple of times. Mr Simon said he had disclosed Ms Molloy's option.
Towards the end of the 90-day option period, Mr Simon's solicitor was notified that Ms Molloy wished to buy back the island. He believed the deposit required from Ms Molloy to exercise her option was about €45,000.
If Ms Molloy had been able to exercise her option, Mr Simon said he would have made €100,000 and he would have been very happy with that. He began to have grave doubts when the deposit was not paid and he was sorry that he ever got involved in the transaction.
Mr Simon said there were times when he thought Mr Faldo might have lost interest. The offer from Mr Faldo was communicated to Ms Molloy's solicitors.
A liz pendens (an objection) had been entered against the island property on behalf of Ms Molloy, who had issued legal proceedings.
Mr Simon said he had taken out a loan with Irish Nationwide to buy the island which was repayable within a year. From October 1998 to May 2002 the loan sat there gathering interest and there was nothing he could do.
The building society extended the repayment period and Mr Simon's guarantor for the loan became disillusioned and was not prepared to meet the repayments.
Mr Simon said his solicitor then served notice aimed at having Ms Molloy's legal proceedings heard.
The hearing continues.