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Sale of old Medical Council HQ will improve finances

14 Mar 2016

The Irish Medical Council has moved to sell its former headquarters Lynn House for €2.75 million, which it says will improve its capital position, Irish Medical Times reports.

Kingram House told IMT: “The Council’s net asset position has been adversely affected by accumulated deficits since 2009 and the sale of Lynn House is part of our commitment to improving our capital position and the future financial security of the organisation.

“The Council has undertaken a programme of operational cost-cutting in recent years and this measure is designed to ultimately improve and ensure we maintain a healthy and sustainable capital position.”

A 2009 valuation revalued Lynn House at Lower Rathmines Road, Rathmines, Dublin 6, on an open market basis from €3 million to €2 million.

The currently vacant four-storey modern detached office building is now for sale by private treaty. David O’Malley of real estate advisory firm, Savills, told The Irish Times last week that the building, with a net internal floor area of 730sqm (7,864sq ft), should be of interest to both investors and owner-occupiers. The fit-out includes suspended ceilings with recessed lighting, double-glazed windows, air conditioning, electric heating and 12 car-parking spaces.

The Council signed a five-year lease agreement for its new premises, Kingram House, at an annual rent of €820,000 in March 2008, which expired on December 31, 2012. There was an option to purchase the shareholding of Tanat Limited (incorporating Kingram House) for a fixed price, however, this option expired in March 2011.

As the Council did not exercise its option the owners of Tanat Limited had a call option whereby the Council were obliged to enter into a long-term lease of 20 years at an annual rent of €820,000. This 20-year lease commenced on January 1, 2013 and will expire on December 31, 2032.

According to the Council’s latest Annual Report (2014), the terms of the lease were subject to litigation and the judgement found in favour of Tanat Ltd. The Council had appealed this decision, and has since executed the 20-year lease and settled all outstanding litigation with Tanat Ltd.

lloyd.mudiwa@imt.ie

Lloyd Mudiwa

Click here to view the full article which appeared in Irish Medical Times