State body ditches deal for property ‘€6m under value’
The State agency struck a private agreement to sell 100 acres of prime development property to a company called MMDS Partnership. Although the property is State land, its sale was not advertised.
This immediately sparked controversy. Limerick Fianna Fáil TD Peter Power sought a meeting with Tánaiste Mary Harney, who was then Enterprise Minister, to stop the deal.
Shannon Development insisted it would proceed.
However, the sale has now been stopped, after it emerged the price sought in the private deal €3.25m could be up to €6m short of the market value.
When news of the sale first emerged, Clare businessman Brian Whelan said he had been prepared to pay €5.25m for the property, €2m more than MMDS agreed to pay. Now, property experts say €9m is the appropriate price for the site the former Burlington Industries plant at Gillogue.
New bridges linking the site to the extended University of Limerick campus have enhanced the development value of the property.
Last night Shannon Development admitted the deal had been aborted.
"Following a review of the entire project and having regard to all the information available, Shannon Development has decided not to proceed with the proposed sale of the former Burlington plant at Gillogue to the MMDS Partnership," the agency said in a statement.
Shannon Development said last night that no deal had been signed with MMDS. A spokesman said they were going to put the factory buildings on the market and retain the land.
Mr Power welcomed the decision.
"Given its proximity to the extended UL campus, which is connected by bridge to the main campus, the Gillogue site is an extremely valuable asset and I'm sure will attract huge interest when it is placed on the market."
Mr Whelan said Shannon Development had made a "brave decision" after it emerged the "property was worth a lot more than what it was going for".
He added: "I will be preparing a business plan with a view to bidding for the property when it goes on the open market."
