Written answers

Tuesday, 13 February 2018

Department of Jobs, Enterprise and Innovation

State Properties

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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301. To ask the Minister for Jobs, Enterprise and Innovation the sequence of events surrounding the surrendering of a lease (details supplied); the costs of surrendering the lease; the details of all costs inclusive of costs paid to the landlord and the legal costs; the efforts made to reduce the penalties involved; the efforts made to commercially dispose of the lease to another party; and if she will make a statement on the matter. [6738/18]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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The lease on Carrisbrook House was assigned to IDA Ireland in September 2013, prior to the dissolution of Forfás. Previous to this, the lease had passed through number of State agencies since a 65-year lease was first taken out by An Chomhairle Oiliúna 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.

I am informed that IDA Ireland paid legal fees in the sum of €11,830.52 in respect of its exit from the lease.

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