A Galway businessman based overseas is the front runner to buy a high quality office development, a coach station and a partially built apartment scheme beside Galway railway station for a fraction of its original cost.
The top bidder is believed to have offered more than €4.5 million for the Webworks at Foster Street, which was funded five years ago by Enterprise Ireland (EI), Galway County Council and the failed developer Bernard McNamara.
The overall scheme is believed to have involved an investment of about €35 million.
If the sale is completed at about €4.5 million it will undoubtedly be seen as one of the great bargains after the property crash. EI contributed €4.36 million towards the public-private complex which it promoted as a state-of-the-art technology hub designed to provide office facilities and management support for IT start-ups and companies expanding.
Last June Knight Frank and DTZ Sherry FitzGerald offered the Webworks for sale at €4-€5 million on the instructions of Declan McDonald of PwC who was appointed receiver by the Ulster Bank.
The first tenant moved in in September 2009 but occupancy levels have never exceeded 16 per cent.
EI explained that the drawn-out delays in the construction and the opening of the Galway Webworks came at a time when businesses were starting to experience severe difficulties.
EI pumped €3.82 million into a similar public-private Webworks in Cork where about half the space was occupied over the summer.
Office block
The fully fitted office block in Galway has a floor area of 3,116sq m (33,545sq ft) and includes an impressive full-height ground floor reception area, mezzanine office level and three upper floors.
Office units range in size from 34 to 136sq m (365 to 1,463sq ft). There are meeting rooms, coffee areas and toilet and shower facilities on each of the upper levels.
The ground floor includes an ultra modern coach station, which has been substantially completed with nine bays currently operating and six more remaining to be developed. It is understood that the buses pay a fee each time they use the centre. The development also includes a two-level car park with 148 spaces.
An adjoining site has a partially built apartment scheme with planning permission for 33 apartments, most of them two-bedroom units.
Whoever buys the portfolio is likely to complete the outstanding work, sell off the apartments and let the coach station, car park and office block.
