Capel Developments abandons its development plans for Clontarf Golf Club citing the economic downturn

The €125 million deal was agreed with Capel last November after club members voted to sell the 77-acre site, after beating off a rival bid from Manor Park Homes.

Each member was to be paid €100,000 each for the sale of a golf club's land.

Capel Developments said yesterday it had withdrawn from negotiations on the project because of the current economic climate.

"We have taken this decision in the light of the extraordinary change in the economic climate over recent months," it said in a statement.

"We felt it would be imprudent to proceed at this point in time and rather than have uncertainty, we felt it would be in the best interests of both parties to inform Clontarf now."

The company said it had not taken the decision lightly and was conscious of the "excellent relationship" it had built up with Clontarf and its members over the last eight months.

"We would like to put on record our sincere thanks for the way in which Clontarf has worked with us during this time," Capel said.

Members of Dublin City Council had threatened to block the sale and this issue remained unresolved.

Responding to the decision by Capel Developments to pull out of the deal, the club's general manager Arthur Cahill said: "We're very disappointed at the turn of events."