SHELBOURNE Developments has confirmed that Bank of Scotland has appointed a receiver to some of its assets and subsidiaries at the property company’s own request.

The group said in a statement that it invited Bank of Scotland to appoint Michael McAteer of Grant Thornton as receiver over “select subsidiaries and assets of the group” and of its owner Garrett Kelleher.

“The properties in question are 75 St Stephen’s Green, 46 St Stephen’s Green, Moore Street Plaza and an Andree Putman-designed penthouse apartment on Aston Quay, all city centre properties developed by Shelbourne over the last 15 years,” the statement added.

The group added that it believed the decision to ask the bank to appoint a receiver was in the best interests of the assets and stakeholders.

Secured creditors can appoint receivers to businesses or assets where they believe there is a risk that they will not recover the debt.

The debtors themselves can invite secured creditors to appoint receivers in circumstances where they believe that this is appropriate. Shelbourne is believed to owe the bank in the region of €200 million.

The group retains control of its other Irish properties, largely made up of commercial premises around Dublin city and county and Cratloe Wood student village in Limerick.

Mr Kelleher said yesterday was a sad day for the business and thanked everyone involved in the developments.

He began building Shelbourne’s Irish property portfolio in the mid-1990s, when he returned from Chicago where he ran his own painting and decorating business.

Shelbourne was behind the Chicago Spire project, a 150-storey luxury residential tower on the shores of Lake Michigan in the US city. That development stalled last year after a receiver was appointed to the site.

Mr Kelleher’s other interests include League of Ireland football club, St Patrick’s Athletic, which he chairs and owns through a company called Newtonheath.

He also has a number of properties in the Inchicore area, where the soccer club is based.