War of words over Checkpoint Charlie plans of Irish brothers

ONCE UPON a time, Checkpoint Charlie was the cold war’s hottest fault line, the tense crossing point in to and out of East Berlin. It was where Soviet and American tanks once faced off and almost triggered a third world war.

Two decades after the Berlin Wall fell, it is the site of a new flare-up – and this time the villains are Irish. Berliners were startled by reports yesterday that Irish investors who control the site were broke and that the former border crossing, now home to fast-food and souvenir stands, was set for a foreclosure sale next month.

The focus of Berliners’ ire: Mayo brothers Michael and Cathal Cannon. A closer look at planning records shows that supporting players in the drama are Allied Irish Banks and Nama. Yesterday Michael Cannon rejected German reports that his company was broke – or that it even owned the site.

Five years ago KE Kavel, which is controlled by the Cannons and their partner, Owen Kirk, paid €29 million to buy from a German bank the outstanding charges on the two sites on either side of the Friedrichstrasse.

The current owner of the site is in liquidation, and Mr Cannon confirmed that an insolvency auction has been set for next month. He is optimistic of halting that auction by paying off outstanding debts inherited on the property, taking control of the site, and turning it into a mixed retail and residential development – including a cold war museum or memorial.

Berliners, who have heard many promises for Checkpoint Charlie over the years, are horrified by the recent appearance of fast-food stands and a beach bar.

“It’s completely baseless and undignified,” said Axel Schneider, a local office worker. “There’s nothing that indicates its historical importance. Either this should be restored or regular offices built on the site. Not this tatty carnival.”

One block south, at the Berlin Wall Museum, manager Alexandra Hildebrandt is furious at this latest twist in the tortuous saga of Checkpoint Charlie.“The world has to decide if shops or fast-food stands are appropriate for this site or a memorial,” she said.

A spokesman for the city government said it remained optimistic the Irish investors would build on the site. “Berlin doesn’t want memorials everywhere but it insists on one on this site.”

Michael Cannon said yesterday development work would start soon and the food stalls, put in place by the German liquidator, would vanish. “We don’t own the site and we weren’t aware kebabs were being sold there,” he said. “But they’re all short-term tenancies.”