The troubled Peter McVerry Trust is in talks with the Government to give up ownership of some of its €160 million property portfolio, in line with conditions set at the time of its €15 million State bailout two years ago.
Ireland’s largest housing charity is also discussing the transfer of certain property assets to local authorities which provided mortgage loans to fund some of its housing projects.
“This work is ongoing and no decision has been taken on the number of properties that may transfer from the trust or the specific properties involved,” the Department of Housing said in reply to questions.
After three recent reports highlighted serious governance failings in the charity established by Jesuit priest Fr Peter McVerry, attention has turned to the future of its extensive property assets. Board changes are also in prospect next month.
The Department made it clear that the 2023 bailout deal “included a specific condition whereby the Minister has the right to recover the value of the exceptional funding provided, by way of transfer of assets, including unencumbered land/properties, or by way of the creation of a second charge over already encumbered property”.
Unencumbered property is real estate that is free of debt or any other financial liabilities. Encumbered property is subject to debt.
The Department went on to cite “engagements” with the charity “relating to an examination of unencumbered properties which may transfer from the trust in line with the aforementioned conditions attached to the exceptional funding”.
“In addition to this, further sites and properties already purchased by the trust using public funding, such as the Department’s capital assistance scheme, but which are not currently under development, have been identified which may transfer to be developed by local authorities or other [approved housing bodies],” it said.
Approved housing bodies are organisations such as the McVerry Trust that receive public funds to provide affordable housing.
The charity said it will soon hand over a derelict former nursing home in Glenageary, south Dublin, to Dún Laoghaire-Rathdown County Council and also expects to transfer other properties to local authorities.
Ardeeshal Lodge at Upper Glenageary Road was acquired by the trust in 2022, but the property was placed on the council’s dereliction register a year ago after a complaint about its condition.
“The property was inspected by Dún Laoghaire-Rathdown County Council and deemed to be in a derelict condition prior to being placed on the register,” the council said.
After one year on the register, the property has been subject to an annual levy set at 7 per cent of its market value since the beginning of this month. Such levies are taken on a pro-rata basis according to a valuation determined by the Dublin City Valuers Office. The valuation set for the property remains unclear.
The consent of Minister for Housing Darragh O’Brien is required to go ahead with the transfer, the McVerry Trust said, citing a detailed review of its properties.
“Working closely with all stakeholders including local authorities and the Department of Housing, Local Government and Heritage, we have decided to seek Ministerial consent for the transfer of a number of properties to the relevant local authority,” the charity said.
“We anticipate that we will be seeking consent to the transfer of further properties in 2025 as the review progresses,” it added.
“We confirm that there has been no default in payment of any mortgage.”
The McVerry Trust declined to specify the number the number of properties that might be transferred.
Citing talks on bailout conditions, the Department reported “significant progress” in improving how the charity carries out its work.
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