Jan. 15–Kiawah Partners has placed its high-end golf resort in Ireland into receivership to restructure the money-losing property’s debt and line up a buyer.
The firm this week appointed two officials from the accounting firm EY to run the Lodge at Doonbeg and Doonbeg Golf Club until the eventual sale.
“This is more of a restructuring than a bankruptcy,” Kiawah Partners spokesman Mike Touhuill said today.
The resort and club remain open with no changes to its day-to-day operations, he said.
“We’ve fully committed the funding to operate the property until we can seek a buyer, which is what we’re going to do,” Touhill said.
The move comes about six months after South Street Partners bought Kiawah Partners for an estimated $360 million.
At the time of the purchase the Charlotte-based investment firm said it was evaluating what to do the overseas real estate it had acquired as part of the deal, including Doonbeg.
The resort and its acclaimed Greg Norman-designed links-style golf course are in County Clare, on the west coast of Ireland.
Doonbeg has never made money in the 11 years since it opened. Most of the debt that is to be restructured is tied to the real estate.
“We’ve had interest from other parties,” Touhill said, referring to prospective buyers. “We’re confident we’ll have a sale in the short term.”
South Street Partners is focusing its efforts on residential real estate on Kiawah. Last year, it sold off a resort and marina that Kiawah Partners had spreadhded on the West Indies island of St. Kitts under the firm’s previous ownership.
More recently, it sold Freshfields Village, a shopping center and office property at the end of Betst Kerrison Parkway.
Contact John McDermott at 937-5572.
