MULTI-MILLIONAIRE developer Bernard McNamara has sold his 14.5 per cent stake in the Superquinn chain to his co-investors in the supermarket operator. The consideration he received for his shares was not disclosed.

Mr McNamara was one of the most prominent members of the Select Retail Holdings consortium, which acquired the business from the family of Senator Feargal Quinn for €450 million in 2005.

A prolific investor, his most recent activities have been more as a buyer of assets than a seller.

In a statement issued yesterday evening in response to a query from The Irish Times, Mr McNamara said it was always understood within the consortium that his investment in the group would be for a three-year period.

"In autumn 2004 I was invited to join a consortium that was negotiating the purchase of Superquinn from the Quinn family. My involvement was purely as an investor. I was not expected to have, nor did I wish to have, any day-to-day involvement in the running of Superquinn," he said.

"It was always understood by the shareholders involved in the consortium that my involvement would be for approximately three years.

"The business has done very well and I am now making my natural and agreed exit to the remaining members of the consortium, to whom I wish every success in the future running of the business."

Mr McNamara was one of five shareholders to hold a 14.5 per cent stake in the business, the others being developer Jerry O'Reilly, property consultants David Courtney and Bernard Doyle, and hotelier Terry Sweeney.

Financier Simon Cantrell and accountant Kieran Ryan held 10 per cent prior to the dilution of Mr McNamara's shares and Superquinn executive chairman Simon Burke held 7.5 per cent.

The extent to which the other shareholders increased their interest in the business after Mr McNamara's exit is not known. Also unknown is the valuation at which he sold his shares, which is presumed to have increased since 2005 in light of the chain's improved performance since then.

Mr McNamara's spokesman declined to comment on the valuation and Mr Burke declined to comment on any aspect of the transaction.

Superquinn is said to be operating on a profitable basis again after a long decline in which rival operators ate into its sales and profitability.

The chain increased sales last year to some €620 million from €580 million in 2006. It is investing heavily in the opening of new stores and refurbishing of existing outlets.

Last year the consortium sold six stores to Friends First for €142.5 million in a sale and leaseback deal.

The money was used to pay down debt and to boost a reserve for future site acquisitions.

Mr McNamara bought the Burlington hotel in Dublin for €288 million last year.