Mr Derek Quinlan, the tax inspector turned property investor, is poised to enter the bidding battle for Chelsfield, the UK company whose €3 billion in assets includes a stake in the prestigious golf club that Irish businessman Mr Seán Quinn is set to buy.
Mr Quinlan has sought financial information on Chelsfield from investment bank NM Rothschild, which is handling its sale, on the basis that he is interested in bidding for the company.
A source close to Chelsfield said that Mr Quinlan had made the approach. The company's board has already met to discuss a £585 million (€846 million) cash offer tabled by Australian shopping centre giant Westfield.
The offer values the company's assets at around £2.2 billion - it has £1.6 billion in debt on its balance sheet following a management buyout earlier this year.
Mr Quinlan's interest in Wentworth, the Surrey golf club 60 per cent-owned by Chelsfield, is thought to have sparked his interest in the property company. Chelsfield has two other key assets, the White City retail and residential development in Shepherd's Bush in London, and another large development at Stratford in the east end of the British capital.
Mr Seán Quinn, chairman of the combined property, financial services and industrial business Quinn Group, yesterday appeared to be winning the race to buy Wentworth. Chelsfield has backed his £122 million offer for the property, and has said that it will not recommend any rival bids unless they top £130 million.
Mr Quinlan could face another powerful Australian rival, developer Multiplex, in the battle for ownership of Chelsfield. Multiplex is building the new Wembley Stadium in west London and already owns 7 per cent of Chelsfield. Some reports indicated that it might be prepared to offer closer to £600 million.
While Mr Quinlan has entered the fray late, UK property market analysts said it would be foolish to dismiss him. Through his vehicle, Quinlan Private, the property dealer and a number of high net worth Irish backers snapped up the Savoy Hotel Group for €1.13 billion.
Last month, he sold the Savoy Hotel property on its own to Saudi Arabian billionaire Prince Alwaleed Bin Talal and Bank of Scotland for €300 million, generating a quick return.
Chelsfield is a different proposition to his other investments, as the company is a developer.
Mr Elliott Bernerd founded Chelsfield in 1988, and floated it on the London Stock Exchange in 1993. He took it private four months ago, taking on £1.6 billion in debt, with the help of the billionaire Reubens brothers. Mr Bernerd has since fallen out with the Reubens and the brothers have put their 35 per cent stake on the market, sparking the bidding war.
