A high-profile housing scheme in Kilkenny went into receivership yesterday after the developer was forced to abandon the project. The news came as one economist said the Republic's house market is weakening at a faster rate than originally expected.
ACC Bank said it has appointed accountant Declan Taite of Dublin firm Farrell Grant Sparks (FGS) as receiver and manager to the Ardilea development on Castlecomer Road, Kilkenny, after it emerged that builder William Phelan & Sons did not have the resources to complete the scheme.
The move means that 28 people who have signed contracts to buy homes in the second phase of the development are relying on Mr Taite to ensure they are finished and the sales completed. He issued a statement yesterday saying he "intends to complete out the development in an expeditious manner and close all contracted sales as soon as is practically possible".
The second phase consists of 34 houses and apartments. Mr Whelan originally planned to build 84 homes in Ardilea. There were 30 in the first tranche, most of which have been sold and are occupied.
A site, with both planning and services such as water and electricity, has been prepared for the third stage. It is likely the receiver will simply sell this land as there were no sales agreed for this phase.
Ardilea is a gated development and units were selling from €270,000 for apartments to €870,000 for detached, six-bedroom houses. All were built to high specifications.
The Irish Timesmade a number of unsuccessful attempts to contact Mr Phelan by telephone yesterday. It is understood that he bought the site for a reasonable sum. Sales have been strong since the development got under way two years ago.
Meanwhile yesterday, Goodbody Stockbrokers economist Dermot O'Leary said the Republic's home-loan market remained depressed and that house building, the biggest element of the construction industry, was slowing faster than expected.
Mr O'Leary said there was growing evidence that builders were selling finished stock before staring on new projects. As a result, the firm is "pulling back" its original forecast of the number of new homes that will be built in the State this year by 4 per cent to 75,000 units. This would drop to 60,000 next year.
