Developer Padraic Rhatigan is understood to be close to refinancing an €80 million debt due on properties that include a high-profile hotel and office block in Dublin that was recently bought by Goldman Sachs.

Ulster Bank sold a portfolio of property loans dubbed Project Nadal to Goldman Sachs that was tied to hotels in Dublin and Belfast as well as a number of other commercial properties.

The assets included the Radisson Blu on Golden Lane in Dublin, two adjacent office blocks and industrial units in Athlone and Galway developed by Mr Rhatigan, against which an €80 million debt is secured.

It is believed that these loans were “performing”, that is the developer was meeting whatever payments were due to the bank when they fell due.

He is now understood to be close to refinancing the entire €80 million due against the properties with a US fund that has already done a number of similar deals in the Republic and is prepared to pay off the entire amount.

Quick profit

The deal could mean that Goldman Sachs would earn a quick profit on the Rhatigan-linked properties as it bought the loans at 90 per cent of their par value.

However, the situation is complicated by the fact that Beltany Properties, which holds some of the debts that Goldman has bought in the Republic, has appointed receivers to two companies, Casius and Tolamor, which have an interest in the hotel and other properties.

The two companies held the interests of investors who originally backed the scheme through property-based tax incentives.

Mr Rhatigan has no involvement, either as a director or a shareholder, in Casius or Tolamor.

They owned the hotel and the scheme involved Mr Rhatigan buying the companies back from the tax-based investors, effectively by clearing the debt, which he will shortly be in a position to do.

Beltany appointed Kieran Wallace of KPMG as receiver to both companies at the end of last month, giving it control of their interest in the property.

Receivers

In a statement, the company said: “Receivers were appointed to Casius Investments Ltd and Tolamor Ltd in late December by Beltany Property Finance Ltd following non-payment of a debt which had previously fallen due. The appointments were not contested.”

Mr Rhatigan was not in a position to contest the receiver’s appointment as he has no involvement with the companies, neither of which have any capital. His new lender is understood to be aware of the complication, but is still going to refinance him.

Mr Rhatigan's property development interests are separate from his building business, JJ Rhatigan.

The four-star Radisson Blu on Golden Late has 150 bedrooms and was said to be trading well when the loans were sold in December.

Ulster Bank had engaged estate agents CBRE and accounting group KPMG to handle the portfolio sale. It it understood that there was significant interest from overseas investment funds in the assets.