Written answers

Tuesday, 2 October 2012

Department of Jobs, Enterprise and Innovation

Departmental Properties

Photo of Catherine MurphyCatherine Murphy (Kildare North, Independent)
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To ask the Minister for Jobs, Enterprise and Innovation if his attention has been drawn to the rent being paid, on a 65 year lease up to 2034, at a current cost of €1.18million per year by Forfás, for a building they do not occupy (details supplied) in Dublin 4; if he will estimate the total cost to the State of this property in view of the fact that it is subject to seven year upwards only rent reviews with no break options; if he will itemise all other properties being rented by the State without being occupied; if he will supply the terms of all such leases; and if he will make a statement on the matter. [41452/12]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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On its establishment in 1994, Forfás inherited responsibility for leases on Wilton Park House, Carrisbrook House and Knockmaun House, all of which properties are in Dublin. The latter two premises were surplus to State requirements and have been sublet for many years.

Carrisbrook House was acquired by AnCO in 1969 on a 65 year full repairing lease commencing on 1st August 1969 and expiring on 31st July 2034. There is no provision for lease breaks and the rent is due for review every seven years.

The Industrial Development Authority acquired assignment of the lease in 1976. Since the relocation of IDA to Wilton Park House in 1985, the Carrisbrook House offices were leased to a number of tenants on a cost-neutral basis to the Exchequer until early 2008 when a major tenant exercised a lease break and vacated the premises. The Israeli Embassy is currently the only occupant of the premises, on a sub-lease which expires in 2025, with lease break provisions in 2015 and 2020. Since the departure of the major tenant in May 2008, six floors in Carrisbrook House have been vacant. The total cost of vacant space in Carrisbrook House in 2012 is estimated at €1.3 million, inclusive of rent, rates and service charges.

Forfás also holds the lease on Knockmaun House, Lower Mount Street, Dublin 2, which the agency inherited on its establishment. This lease, which was negotiated by the IDA, commenced on 6th July 1979 and expires on 5th July 2014. The premises is held on a full repairing lease for 35 years, with no provision for lease break and is subject to a five yearly rent review.

These premises were sublet on a cost-neutral basis to the Exchequer until April 2009 when one of the tenants availed of a lease break and surrendered their portion of the building amounting to half of one floor. The remainder of the building (4.5 floors) remains occupied. The total cost of vacant space in Knockmaun House in 2012 is estimated at €200,000, inclusive of rent, rates, and service charges.

Forfás has been actively seeking to market the vacant space in both Carrisbrook House and Knockmaun House since they became vacant. Due to the downturn in the property market and a surfeit of vacant office accommodation in Dublin, these efforts have proven unsuccessful to date. However, Forfás continues to market the availability of the offices.

The Secretary General of my Department has also written to the Office of Public Works, advising them of the availability of this office space. The IDA have also been asked to bring the availability of this accommodation to the attention of prospective clients. To date, neither body has identified a requirement for the accommodation.

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