Mayo brothers Michael and Cathal Cannon have averted a foreclosure auction of two undeveloped sites at Berlin’s historic Checkpoint Charlie.

Berlin’s tax authorities had forced an auction on May 10th to claw back €400,000 in property tax owed by the current owner, in liquidation for some years.

“The auction won’t go ahead as we have reached agreement with the tax authorities,” Michael Cannon told The Irish Times.

“We’re going to take over their proceedings and pay off what’s owed which means, effectively, we will be in control of the sites.”

In 2007, the Cannon brothers spent €29 million to buy the ground debt on the site, which they later offered as security to Allied Irish Banks. The debt has since passed over to Nama.

The Irish brothers say they have also reached agreement with the liquidator to take over ownership from the current proprietor, listed in the land registry as CEDC American Business Center.

Mr Cannon said it was still too early to discuss plans for developing the sites, which have mostly stood empty since Germany unification.

In recent weeks, the Irish investors came under fire in Berlin after fast food stalls opened on the historic sites.