Chief Minister Howard Quayle says he hopes the former Castle Mona Hotel can be restored to its former glory under new ownership.

The seafront landmark was sold at auction in May for £1.21m.

But the identity of the new owners had been kept firmly under wraps until last week when the Examiner revealed the buyer to be the Tevir Group.

Mr Quayle said: ’I welcome a new owner buying it. They have been buying other assets.

’And obviously they seem to have the funding clout to bring it back to its former glory. We’ve not had any direct negotiations with them.’

Tevir Group has confirmed its purchase of the Castle Mona and also the former Zurich building on Athol Street, Douglas.

The new owners said they ’recognise and respect’ the historical significance of old hotel and work has begun to carry out emergency repairs to the property, which has lain empty since closing in 2006.

’A further announcement regarding plans for the Castle Mona site will be made in due course, the current priority is securing the building and preventing further deterioration,’ they said in a statement.

Tevir said arrangements are already well advanced over new tenants for the former Zurich building.

It said it will be undertaking development projects in the island that will ’generate a positive impact for the benefit of Manx residents, Manx businesses and the broader Isle of Man economy’.

Tevir is also understood to be in talks over buying the long-vacant Villiers Square site on Loch Promenade.

Keith Jones, of Coutts House in Onchan, and accountant Ciaran Doherty are directors of Tevir Properties (IoM) Ltd which has bought the former Zurich building for £4.35m.