The €5 million evaluation of the old Kevin Street College of Technology site’s ground rent lease’s acquisition by a development fund has been dramatically reduced to just €10,000. This comes after GA Development Dublin ICAV (representing its subsidiary GA Development Fund) launched an appeal against the Dublin County Registrar’s decision to set the purchase price at €5 million, a ruling favourable to Technological University Dublin.
In his reserved judgement, Judge John O’Connor stated there was no dispute about the fund’s rights to acquire the lease under the Grounds Rent Act. Still, disagreements arose about the cost payable to TU Dublin for it. He further noted that considerable construction work had taken place on the property, which had been part of the Kevin Street College of Technology campus for many years.
In 2019, the fund shelled out €140,123,000 to buy the college campus from TU Dublin, including a building leased since 1952. The agreement saw both parties agree that TU Dublin would seek to get the lease transferred and oppose the County Registrar’s decision if felt necessary. According to the sales contract, there was an 18-month period set for this transfer, with a provision stating a €5 million reduction in the purchase money if it wasn’t done on time.
Judge O’Connor continued, stating that the deal was finalised on this ground, withholding €5 million because the lease was not transferred within the contract’s stipulated timeframe. This amount was later refunded to the fund, with a Deed of Assurance in August 2021 allotting TU Dublin’s interests to the fund.
Echoing the obligation of the County Registrar to value the purchase price fairly from both a buyer’s and a seller’s perspective, Judge O’Connor concluded with numbers from both parties’ professional evaluators, who declared the freehold’s market value would usually be €10,000. Thus, he reckoned this to indeed be the reasonable purchase price.
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