Derek Quinlan
Encyclopedia
Derek M Quinlan is an Irish businessman prominent in the field of real estate
investment and development. A former tax inspector at the Irish Revenue Commission, he formed investment syndicates of high-net worth individuals and to buy properties across the world. His principal investment vehicle was Quinlan Private, a private equity firm with offices in Dublin, London and New York. Quinlan's period of greatest prominence and success coincided with the peak of the global real estate bubble in 2004-7. In 2009, he resigned from Quinlan Private and moved to Switzerland
to live in a villa on the shores of Lake Geneva owing huge sums. His loans have been transferred since to Nama (National Asset Management Agency of Ireland) which, in an effort to recoup some of the money, seized various assets, including his private collection of 16 paintings.
and University College, Dublin. He began his career as an accountant with Coopers & Lybrand before joining the Irish Revenue Commissioners as a tax inspector. In 1989 he went into private practice, founding Quinlan Private as an asset management firm for high net worth individuals. He specialised in investing in tax designated areas in the 1990s in Ireland supporting Irish government policy in relation to property renewal,regeneration and job creation.
hotels including Claridges, The Connaught Hotel and The Savoy Hotel. Quinlan outbid competing buyers, including Saudi Prince Alwaleed Bin Talal. Some months later, Quinlan sold The Savoy Hotel to the Saudi prince for £250 million, while retaining the other hotels in the group, subsequently renamed The Maybourne Hotel Group.
In 2006 Quinlan headed another syndicate that bought the Irish Glass Bottle development site in Dublin's Ringsend
for €413 million. Anglo-Irish Bank was the principal lender. As of 2009, the site remained undeveloped and the value was written down to €60 million. In 2010, Anglo-Irish Bank's loan on the site was transferred to Ireland's National Asset Management Agency
.
In 2007 Quinlan Private acquired Irish hotel chain Jurys Inns
for €1.165 billion. Some months later, Quinlan obtained a €200 million investment in Jurys from the sovereign wealth fund of Oman
, as part of a plan for further international expansion of the chain.
Also in 2007, Quinlan participated in syndicates which bought the London headquarters building of Citibank
for €1 billion, and the Madrid
headquarters building of Banco Santander for €1.5 billion.
In 2009 Quinlan resigned from Quinlan Private and moved to Switzerland to concentrate on negotiations with lenders to restructure his personal debts of €600 million. He personally owed Anglo-Irish Bank alone €300 million. Other major lenders included Bank of Scotland
(Ireland), Allied Irish Bank, Bank of Ireland
, Royal Bank of Scotland
and Barclays.
As of 2010, he was actively trying to sell assets, including his personal residences in Dublin, New York
and Cap Ferrat
.
In May 2010 Royal Bank of Scotland moved to repossess his yacht. In April 2011 a receiver was appointed on behalf of the National Assets Management Agency (NAMA) to take charge of a number of properties owned by Quinlan, after he had failed to repay loans to the agency totalling hundreds of millions of Euros.
"The bears now tell us that there was too much debt in the market and that the economy is too polarised. The bears see no way out for Ireland. I do."
"If you don't believe in yourself then why should anybody else"
Real estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
investment and development. A former tax inspector at the Irish Revenue Commission, he formed investment syndicates of high-net worth individuals and to buy properties across the world. His principal investment vehicle was Quinlan Private, a private equity firm with offices in Dublin, London and New York. Quinlan's period of greatest prominence and success coincided with the peak of the global real estate bubble in 2004-7. In 2009, he resigned from Quinlan Private and moved to Switzerland
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
to live in a villa on the shores of Lake Geneva owing huge sums. His loans have been transferred since to Nama (National Asset Management Agency of Ireland) which, in an effort to recoup some of the money, seized various assets, including his private collection of 16 paintings.
Early life and career
Quinlan was born in Dublin in 1947, the son of an Army Officer. He attended Blackrock CollegeBlackrock College
Blackrock College is a Catholic voluntary secondary school for boys aged 14–18, located in Williamstown, Blackrock, County Dublin, Ireland. The College was founded by French missionaries in 1860, to act as a school and civil service training centre. Set in of grounds, it has an illustrious...
and University College, Dublin. He began his career as an accountant with Coopers & Lybrand before joining the Irish Revenue Commissioners as a tax inspector. In 1989 he went into private practice, founding Quinlan Private as an asset management firm for high net worth individuals. He specialised in investing in tax designated areas in the 1990s in Ireland supporting Irish government policy in relation to property renewal,regeneration and job creation.
Notable transactions
In 2004 Quinlan headed an investment syndicate that bought The Savoy Group for £750 million, giving it control of landmark LondonLondon
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
hotels including Claridges, The Connaught Hotel and The Savoy Hotel. Quinlan outbid competing buyers, including Saudi Prince Alwaleed Bin Talal. Some months later, Quinlan sold The Savoy Hotel to the Saudi prince for £250 million, while retaining the other hotels in the group, subsequently renamed The Maybourne Hotel Group.
In 2006 Quinlan headed another syndicate that bought the Irish Glass Bottle development site in Dublin's Ringsend
Ringsend
Ringsend is a southside inner suburb of Dublin, the capital of Ireland. It is located on the south bank of the River Liffey, about two kilometres east of the city centre, and is the southern terminus of the East Link Toll Bridge....
for €413 million. Anglo-Irish Bank was the principal lender. As of 2009, the site remained undeveloped and the value was written down to €60 million. In 2010, Anglo-Irish Bank's loan on the site was transferred to Ireland's National Asset Management Agency
National Asset Management Agency
The National Asset Management Agency is a body created by the Government of Ireland in late 2009. It is in response to the Irish financial crisis and the deflation of the Irish property bubble....
.
In 2007 Quinlan Private acquired Irish hotel chain Jurys Inns
Jurys Inns
Jurys Inns is a chain of hotels founded in Ireland and previously owned by Jurys Doyle Hotel Group. In 2007 the Jurys Inns portfolio of hotels were bought by Derek Quinlan's Quinlan Private Venture Capital company.- History :...
for €1.165 billion. Some months later, Quinlan obtained a €200 million investment in Jurys from the sovereign wealth fund of Oman
Oman
Oman , officially called the Sultanate of Oman , is an Arab state in southwest Asia on the southeast coast of the Arabian Peninsula. It is bordered by the United Arab Emirates to the northwest, Saudi Arabia to the west, and Yemen to the southwest. The coast is formed by the Arabian Sea on the...
, as part of a plan for further international expansion of the chain.
Also in 2007, Quinlan participated in syndicates which bought the London headquarters building of Citibank
Citibank
Citibank, a major international bank, is the consumer banking arm of financial services giant Citigroup. Citibank was founded in 1812 as the City Bank of New York, later First National City Bank of New York...
for €1 billion, and the Madrid
Madrid
Madrid is the capital and largest city of Spain. The population of the city is roughly 3.3 million and the entire population of the Madrid metropolitan area is calculated to be 6.271 million. It is the third largest city in the European Union, after London and Berlin, and its metropolitan...
headquarters building of Banco Santander for €1.5 billion.
Business difficulties
The financial crisis of 2007-2010 severely impacted Quinlan's business model, which was predicated on acquisition using maximum leverage. His Irish property assets in particular suffered precipitous declines in value.In 2009 Quinlan resigned from Quinlan Private and moved to Switzerland to concentrate on negotiations with lenders to restructure his personal debts of €600 million. He personally owed Anglo-Irish Bank alone €300 million. Other major lenders included Bank of Scotland
Bank of Scotland
The Bank of Scotland plc is a commercial and clearing bank based in Edinburgh, Scotland. With a history dating to the 17th century, it is the second oldest surviving bank in what is now the United Kingdom, and is the only commercial institution created by the Parliament of Scotland to...
(Ireland), Allied Irish Bank, Bank of Ireland
Bank of Ireland
The Bank of Ireland is a commercial bank operation in Ireland, which is one of the 'Big Four' in both parts of the island.Historically the premier banking organisation in Ireland, the Bank occupies a unique position in Irish banking history...
, Royal Bank of Scotland
Royal Bank of Scotland
The Royal Bank of Scotland Group is a British banking and insurance holding company in which the UK Government holds an 84% stake. This stake is held and managed through UK Financial Investments Limited, whose voting rights are limited to 75% in order for the bank to retain its listing on the...
and Barclays.
As of 2010, he was actively trying to sell assets, including his personal residences in Dublin, New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
and Cap Ferrat
Cap Ferrat
Cap Ferrat is situated in Alpes-Maritimes département, in southeastern France. It is located in the commune of Saint-Jean-Cap-Ferrat.Saint Hospitius lived here as a recluse during the sixth century...
.
In May 2010 Royal Bank of Scotland moved to repossess his yacht. In April 2011 a receiver was appointed on behalf of the National Assets Management Agency (NAMA) to take charge of a number of properties owned by Quinlan, after he had failed to repay loans to the agency totalling hundreds of millions of Euros.
Quotes
“When I started in this business, I quickly understood how the mathematics work, that you get as much leverage as possible, [and buy property] with a good covenant and a good location.”"The bears now tell us that there was too much debt in the market and that the economy is too polarised. The bears see no way out for Ireland. I do."
"If you don't believe in yourself then why should anybody else"