Mary Mitchell O'Connor (Dún Laoghaire, Fine Gael) | Oireachtas source

I understand the Deputy is referring to Carrisbrook House, the lease on which was taken over by IDA Ireland from September 2013 on the assignment of properties from Forfás to the IDA. Prior to this, the lease had passed through number of State agencies since a 65-year lease was first taken out in 1969. Carrisbrook House was 85% vacant for a number of years, despite having been actively marketed by Forfás and the IDA. The building was difficult to sublet, partly on account of the high cost of refurbishment. The IDA also did not have vacant possession of the entire property due to an existing lease with a tenant which runs until 2025, thereby limiting its marketability further.

After carefully considering the best course forward, the IDA decided to exit the lease with effect from December 2015 as it was the least costly option for the State. The alternative was continuing to meet contractual obligations to pay rent over the remaining lifetime of the lease until 2034, together with meeting additional liabilities that arise in the context of the full repairing and insuring lease. While the payment of €9.4 million to exit the lease was a significant amount, it represents a saving to the State of an estimated €13.65 million in comparison to maintaining the lease until completion.

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