The decision by investors to ditch the Clantarf Golf Club redevelopment has been blamed on the current economic downturn.

Capel Developments' €125 million bid for the 77-acre Dublin golf club was agreed last November, following a vote by club members.

Capel had competed for the site with Manor Park Homes.

Club members had expected to receive €100,000 each for the sale of the land.

However, Capel has now backed out of further negotiations and withdrawn from the project.

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The firm has attributed its decision to the economic slump currently being felt across Ireland.

A Capel spokesperson said: "We have taken this decision in the light of the extraordinary change in the economic climate over recent months.

"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."

According the Capel, this was not a easy decision to reach, in light of the "excellent relationship" it had formed with the golf club since negotiations began.

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

Clantarf Gold Club's General Manager, Arthur Cahill, said: "We're very disappointed at the turn of events."

(PR/JM)