A row over a financial fund's appointment of a receiver over a luxury Cork estate and event venue that has hosted celebrities including Michael Jackson has been settled. Businessman Desmond McGahan had brought proceedings where he sought an injunction restraining Mars Capital Finance (Ireland) Designated Activity Company and receiver Rory Cotter of Crowe Ireland from interfering with the sale of the exclusive estate, Ballinacurra House, in Kinsale, Co Cork. Ballinacurra House has operated as an exclusive, compact, 25-acre private estate and corporate venue, renting at up to €40,000 per week to celebrities, A-listers and corporate entities.
When the matter came before Ms Justice Siobhan Stack at the High Court on Thursday, Edward Farrelly SC, for Mr McGahan, said the matter had been resolved following a mediation. While the terms of the settlement are confidential, it is understood the plaintiff will proceed with his plans to sell the property. The defendants, represented by William Abrahamson SC, said they were consenting to the settlement, The matter was adjourned for several months to allow for the terms of the settlement agreement to be implemented.
In his action, Mr McGahan claimed he and his wife Lisa are the owners and operators of the property, where they also reside with their three children. He claimed he was attempting to sell the property, which he says is his family home, for between €5.5m and €6m.
He claimed several parties were interested in acquiring the property. He claimed he was unable to sell the venue after Mars Capital, which is owed €2.2m, appointed Mr Cotter as receiver over the property.
In early February, he said without warning, security staff engaged by the defendants entered the property and changed the locks. For some time afterwards, he maintained several security guards resided at the property and restricted access to various parts of the venue. Mr McGahan claimed the receiver had not been validly appointed.
He also contended the fund may seek to sell the property at a gross undervalue of €4m. The defendants denied any wrongdoing. As a result of the receiver's appointment and security coming on the property, Mr McGahan sought an injunction against the defendants, which he says he required in order to progress the sale.
The injunction, if granted, would have restrained the defendants from interfering with the sale process and would also require members of Blackwater Security placed on the property by the defendants to leave. The businessman claimed that in October 2023, Mars acquired the loans from another fund, Pepper Finance Corporation Ireland DAC. He claimed he had an arrangement in place with Pepper that would result in him selling the property, and repaying the loan in full, by the summer of 2024.
He said he had been trying to sell the property for several years, but that process has been delayed due to various factors, including his own serious illness. It was further delayed because in 2021 Pepper allegedly lost the deeds of property, which resulted in a proposed €7m sale falling through. He claimed by appointing Mr Cotter, Mars was attempting to breach and circumvent the agreement reached with Pepper, in order to achieve a quick sale.
The plaintiff's claims were all rejected by the defendants, and they had opposed the application for the injunction. The property has been used for events, weddings, and has been rented to many famous people including European royalty, A-list actors, politicians, businesspeople, and musicians. The well-known late singer Michael Jackson and his three children stayed there in 2007.
In 2017, it was selected as Ireland's wedding venue of the year..
