The Mayo brothers who control Berlin's Checkpoint Charlie site are selling their interest in the Nama-backed property after seven years.
Checkpoint Charlie was once the hottest spot in the Cold War, a border crossing between East and West Berlin that saw tense standoffs between US and Soviet tanks. Today a popular tourist destination, the site has been the centre of a stand-off between Irish developers Michael and Cathal Cannon and the city of Berlin since 2007.
The brothers planned to develop the 9,000sq m site on both sides of Friedrichstrasse as mixed residential and commercial property. Now they want to offload it, having built nothing.
‘Time is right’
“We feel the time is right to move it as Berlin is going very strong,” said
Michael Cannon
to
The Irish Times
. “When we moved to
Germany
things were quiet and we take a view that Germany is now going where we hoped it would.”
After the previous owners went into liquidation the Cannons, with their partner Owen Kirk, bought the debt on the site for €29 million. They later offered this as security to Allied Irish Banks, a debt which has since passed to Nama.
The site’s complicated history meant the brothers never acquired outright ownership; instead they are selling the charges and option they control on the site.
Their failure to develop prompted local politicians to demand that Berlin’s state government seize the site. Two years ago a foreclosure almost happened until, at the last minute, the Cannons paid outstanding property tax on the site.
In 2012 they opened a temporary Cold War exhibit there to show they were serious developers. But then a series of fast-food kiosks and an outdoor cocktail bar opened something the city said was disrespectful to its history.
The brothers insist they were unaware that their site manager had issued any kiosk contracts and say they expire at the end of the year. Yesterday Mr Cannon said his firm was not in conflict with Nama and that he and his brother had decided to concentrate again on their developments in Ireland and Britain.
“It is in our interest and Nama’s interest to maximise the value for the site,” he said. “Nama have their own agenda and you have to work within their guidelines when you dispose of assets ... as they want to generate a certain amount of debt reduction.”
The brothers say they are confident the sale will turn a profit, as they are selling it off as a package.
