A development fund has succeeded in having a €5 million valuation on its buyout of the ground rent leasehold on the old Kevin Street College of Technology site slashed to only €10,000.
GA Development Dublin ICAV – acting for its sub-fund GA Development Fund – had appealed against an award of the Dublin County Registrar, who had fixed the €5 million purchase price for the fee simple in favour of the Technological University Dublin.
Judge John O’Connor, in a reserved judgment in the Circuit Civil Court, said there was no dispute between the parties that the fund was entitled, under the Grounds Rent Act, to acquire the fee simple; the challenge had been over the purchase price to be paid to TU Dublin.
Judge O’Connor said the premises for many years had formed part of the campus of Kevin Street College of Technology, and substantial building work had been completed on the lands.
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He said that in April 2019 the fund had bought the college campus from TU Dublin for €140,123,000, including the premises held under a 1952 lease. Both parties had agreed in the sales contract that TU Dublin would apply to the County Registrar to acquire the fee simple and all intermediate interest in the premises and, if necessary, bring an appeal against the registrar’s decision.
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A set date of 18 months had been provided for the acquisition of the ground rents and it had been specifically provided for in the sales contract that the purchase money would be reduced by €5 million if the fee simple interest had not been acquired by the agreed date.
“The transaction completed and €5 million was retained as both fee simple interests had not been acquired within the time prescribed in the contract,” Judge O’Connor said. It had been reimbursed to the fund and a Deed of Assurance of August, 2021 assigned TU Dublin’s interests to the fund.
Judge O’Connor said it was accepted by both parties that it was the obligation of the County Registrar as arbitrator to value the interest which was being acquired based on the price that “a willing purchaser will pay, and a willing vendor will accept”.
He said professional valuers for both parties in the appeal agreed the market value of acquiring of the freehold would in the normal course be €10,000, and he believed this figure to be the appropriate award in the case in respect of the freehold.
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