Sheridan set for €100m profit on Odyssey sale

Property developer Sheridan Group is set to make a €100 million-plus profit from the sale of its interest in Belfast's Odyssey complex.

Sheridan announced yesterday that it has agreed to sell its lease on the Odyssey Pavilion, Imax cinema and Tannery Buildings on nearby King Street on Belfast's east side to Alburn Holdings, a developer headed by businessman and lawyer Noel Smyth.

Neither side revealed the sale price, but it is understood to be in the region of £100 million to £110 million sterling (€147 million to €157 million).

Sheridan's total investment in the centre, a key part of the rejuvenation of Belfast, was in the region of £30 million, meaning it will make a return of between £70 million and £80 million, or between €105 million and €120 million, from the sale.

The centre benefited by £45 million from the millennium fund, set up to pay for the revitalisation of Belfast's city centre.

In a statement yesterday, Sheridan chairman Peter Curistan confirmed the developer was in talks to finalise the sale of the pavilion, Imax cinema and Tannery apartment complex for an undisclosed sum.

"Sheridan Group has confirmed that it has signed exclusivity and confidentiality agreements with Belfast and Dublin-based Alburn Holdings," Mr Curistan said.

"Contracts are expected to be completed by the end of June. Within the deal, Sheridan will retain its currently held operational units in the pavilion and continue its joint-venture arrangements with SMG Europe Ltd, which manages the Odyssey Arena on behalf of Odyssey Trust."

The trust holds the property on behalf of the people of Belfast and is the ultimate owner. Sheridan has a 150-year lease over the properties it is selling. The trust recruited Sheridan following a competitive tendering process as it was felt that the complex needed a private partner to kickstart the development.

Sheridan signalled a year ago that it was planning to sell its interest. The company argued that it is a property developer and wanted to focus on a number of new projects on which it is working. This includes a bid to build Northern Ireland's new national stadium. Opinion is divided over whether this should be located in Belfast or at the site of the Maze prison. Sheridan's bid is for a site on Ormeau Road in Belfast.

It is also taking a case to Belfast High Court against the North's Department of Social Development over its proposals for Queen's Quay at Laganside in Belfast. The project is the last phase of regenerating the area. The department and development company Laganside named Sheridan as preferred bidder last year, but it subsequently lost this status without any explanation.

The court hearing is scheduled for early next month.