The doors of the Castle Mona remained firmly closed today as it was revealed its owners, the Sefton Group, is in talks with a ‘credible’ interested party.
And it emerged the group, which in the words of its chairman is ‘frustrated’ to find a solution, has decided to write down the value of the historic building to £2.5 million.
The Sefton Group also announced a further increase in profitability.
Group chairman Clive Parrish said of the interest shown by the unnamed potential buyers of the Castle Mona: ‘They seem to be a credible interested party’.
Brett Martin, chief executive, said: ‘We have been in discussions for three or four months and they have done a lot of homework.
‘It has not just been a general enquiry, they have had architects and surveyors in and have spent money on the programme.’
But it seems the doors remain firmly shut to Isle of Man Newspapers.
After last Friday’s annual meeting with shareholders Business News requested to be allowed to go inside the so-called ‘Georgian gem’ but the request was turned down point-blank.
Earlier this year another reporter from Isle of Man Newspapers asked if access could be given to take some interior photographs to show readers the current state of the building inside but that request was also declined.
Earlier this year the then Chief Minister Allan Bell told MHKs in the House of Keys: ‘The Castle Mona is a privately-owned building.
‘I think it is absolutely disgraceful the way the building has been allowed to deteriorate, and I hope the company listens to public opinion and the concerns which are being expressed about the continuing deterioration of what is a major national asset and part of our heritage.’
But chairman Clive Parrish told Business News on Friday: ‘The problem is it is an unused property that to the layman may look worse than it is.
‘There are over 300 registered buildings on the Isle of Man.
‘Castle Mona is an important building. We are looking for a solution for it.
‘We have had issues around when the former Chief Minister for instance spoke about it in terms of it being a disgrace.
‘We have got people interested in acquiring it. They know it’s not going to be inexpensive to refinance.
‘We need to keep control commercially over the information around the building.
‘For example our insurers picked it up that the former Chief Minister had said the building was about to fall down. They picked that up on Google and put in a call in to Brett asking what on earth was going on.
‘Their minds were put at rest.’
Mr Parrish hinted that allowing the newspaper in ‘could create more problems for us in finding a solution.
‘Whilst people might be interested in what it looks like, by doing that by putting it in the public domain, could actually create more problems than it solves.’
Chief executive Brett Martin said: ‘We had a structural survey undertaken about 18 months ago and it came out fine. Compare and contrast that with the former Chief Minister saying what he said having never set foot in the building in our ownership.’
Mr Martin said the interested party that had come forward had spent ‘long long days in there with architects, surveyors, structural engineers, stone experts working out where the stone was originally quarried.
‘They have not been put off.’
Mr Parrish added: ‘That is why we believe they are credible. They have invested a lot of their own money so far.’
Mr Parrish, who has been on the board since 2005, and chairman for a couple of years, said: ‘The board remains committed and is as keen to see the Castle Mona brought back to life as much as anybody else in the Isle of Man.’
Mr Parrish described the Castle Mona as the group’s biggest ‘drag anchor’ and one the group is keen to see sold off.
Mr Parrish said the board of the Sefton ‘is as frustrated as the local populace and if we can find a solution for it that is feasible and sensible for us as the current owners of it then we remain open to offers.’
Inside the group’s annual report are notes about the Castle Mona and the decision to devalue the property.
The report notes that ‘under the present economic environment the directors having taken professional valuation advice considered it prudent to make a temporary provision against the carrying value of Castle Mona and accordingly wrote it down to £2.5 million.’
The hotel was closed in 2006 by previous owners, Skyland Investments, taking staff and guests by surprise.
The Sefton Group bought the building, reportedly for around £4 million, in February 2007 with plans to turn it into a four-star hotel but following the downturn in the economy this did not happen and it has remained closed ever since.
Meanwhile shareholders heard that the SeftonGroup has announced a further increase in profitability.
Profit for the financial year ending December 31, 2015 was £411,000, an increase of 60 per cent on the 2014 figure.
There has also been the completion of a deal to refinance the Palace Hotel and Casino site and a 10-year renewal of its casino licence.
The refinancing has been facilitated in the main by Allied Irish Bank (GB).
Knox Capital Solutions (KCS), an island based broker is said to have played a significant role in facilitating the deal.
Mr Parrish told Business News : ‘As a board of directors we are absolutely delighted that we have got to the position where we are.
‘It’s been a long journey and we have a business that is profitable and we are now in a position with a high street banker as our primary lender, who will work with us. We now have time to look at a future clear strategy for the business going throught 2017 and beyond.’
Talking generally about the prospects for the group he said: ‘I genuinely believe that we have secured a longer term future in what we have achieved this year.
‘There are still a lot of hurdles to jump over or hoops to go through not least the uncertainty around Brexit and what impact that will have on the island. But we are in a better place to deal with it now than a while ago.
Mr Parrish said the meeting with shareholders had been a ‘healthy debate.’
He said: The positive financial results we have announced for 2015, coupled with the deal to refinance the Palace Hotel and Casino site, really does underline the Sefton Group’s long-term commitment to the Isle of Man.
‘This deal will help to provide an even more robust financial platform upon which we can develop our flagship hospitality and leisure operations for the benefit not only of our customers, employees and shareholders, but also for the island and its visitor economy.’