Sweetheart Swords Museum Deal for NAMA-bound Developer
March 8, 2010
Last week, the Daily Mirror reported that NAMA-bound developer Gerry Gannon had secured a €1m-a-year deal to lease storage space at the site of the old Motorola Factory in Swords to the National Museum.
The site originally cost Gannon €12m, meaning he should net a tidy €8m profit from the deal. The Minister for the Office of Public Works has since confirmed to me that the deal was only finalised in December 2009, some two months after the NAMA legislation was enacted.
QUESTION NO: *55
DÁIL QUESTION addressed to the Minister of State at the Department of Finance, Dr. Martin Mansergh, TD
by Deputy Joan Burton
for WRITTEN ANSWER on Thursday, 4th March, 2010.
* To ask the Minister for Finance if, in view of reports that at the Office of Public Works has acquired a property at Swords, County Dublin for the purpose of expanding the facilities of the National Museum, that the property has been acquired on a 20 year lease at €1m per annum; if, in view of the depressed property market, an outright purchase of the property was considered; the purchase value of the property; when the acquisition of the property was arranged; the tender process that was established for the acquisition of such a property; the number and the persons who were invited to apply to supply a property through this tender process; if there is an outstanding loan on the property which is likely to be transferred to National Asset Management Agency; if this loan, and the underlying collateral, is transferred to NAMA, could income derived from the OPW lease accrue to NAMA and contribute to the service of interest on NAMA bonds; and if he will make a statement on the matter.
- Joan Burton TD
REPLY.
The Department of Arts Sports and Tourism requested the Commissioners of Public Works to identify a suitable storage facility for the National Museum's collections. In accordance with procedures, eight potential buildings were identified and the National Museum deemed the premises selected as the best fit for their requirements.
As funding for the acquisition of such a facility was limited, and the owner was not amenable to disposing of his interest in the property, the purchase value of the property did not arise.
The landlord demonstrated good title to the property to the satisfaction of the Commissioners' Solicitors and the National Museum's Solicitors. In addition the landlord produced a valid Tax Clearance Certificate prior to the Agreement for Lease being signed. This accords with the Commissioners' normal practice in any such agreement to acquire property.
The Agreement for Lease was signed in December 2009.
Any matters that may arise between the owner of the property and the National Asset Management Agency are outside the remit of the Commissioners of Public Works.
The site originally cost Gannon €12m, meaning he should net a tidy €8m profit from the deal. The Minister for the Office of Public Works has since confirmed to me that the deal was only finalised in December 2009, some two months after the NAMA legislation was enacted.
QUESTION NO: *55
DÁIL QUESTION addressed to the Minister of State at the Department of Finance, Dr. Martin Mansergh, TD
by Deputy Joan Burton
for WRITTEN ANSWER on Thursday, 4th March, 2010.
* To ask the Minister for Finance if, in view of reports that at the Office of Public Works has acquired a property at Swords, County Dublin for the purpose of expanding the facilities of the National Museum, that the property has been acquired on a 20 year lease at €1m per annum; if, in view of the depressed property market, an outright purchase of the property was considered; the purchase value of the property; when the acquisition of the property was arranged; the tender process that was established for the acquisition of such a property; the number and the persons who were invited to apply to supply a property through this tender process; if there is an outstanding loan on the property which is likely to be transferred to National Asset Management Agency; if this loan, and the underlying collateral, is transferred to NAMA, could income derived from the OPW lease accrue to NAMA and contribute to the service of interest on NAMA bonds; and if he will make a statement on the matter.
- Joan Burton TD
REPLY.
The Department of Arts Sports and Tourism requested the Commissioners of Public Works to identify a suitable storage facility for the National Museum's collections. In accordance with procedures, eight potential buildings were identified and the National Museum deemed the premises selected as the best fit for their requirements.
As funding for the acquisition of such a facility was limited, and the owner was not amenable to disposing of his interest in the property, the purchase value of the property did not arise.
The landlord demonstrated good title to the property to the satisfaction of the Commissioners' Solicitors and the National Museum's Solicitors. In addition the landlord produced a valid Tax Clearance Certificate prior to the Agreement for Lease being signed. This accords with the Commissioners' normal practice in any such agreement to acquire property.
The Agreement for Lease was signed in December 2009.
Any matters that may arise between the owner of the property and the National Asset Management Agency are outside the remit of the Commissioners of Public Works.