Government blocks sale of industrial site

THE Government last night blocked the controversial sale of a valuable 115-acre industrial site near the University of Limerick by Shannon Development.

Fianna Fáil Deputy Peter Power said he had contacted Enterprise Minister Micheál Martin at the widespread disquiet about the proposed sale of the old Burlington Industries site for €3.25 million, even though another businessman was willing to pay €5.25m.

“A senior official in the department has contacted me to say the sale will not be allowed to proceed,” Deputy Power confirmed.

The Fianna Fáil backbencher said the reported sale price of €3.25m had caused astonishment, given the strategic location of the site near the University of Limerick campus. Local auctioneers had put the value of the 115 acre site and 323,000sq ft factory at closer to €8-9m.

Clare businessman Brian Whelan, who is based in Killaloe, said he would be prepared to pay €5.25m for the site and guarantee 100 jobs.

“Only a select few were invited to submit business plans for the plant and site at Gillogue. The sale should have gone to public tender. It’s a disgrace,” said Mr Whelan.

Shannon Development revealed last night that a final deal has not yet been concluded as a problem has arisen with the contract it had negotiated with an unnamed company.

However, Shannon Development spokesman Frank Larkin insisted that negotiations on the sale were still on-going with an industrial concern which had expressed interest in locating there, even though a problem with the deal had emerged.

“They (the purchasers) have requested a modification of the original sale contract and we are not acceding to that and have told them they will have to decide on the basis of the first offer,” said Mr Larkin.

Mr Larkin said the State agency does not advertise industrial property but invites proposals from interested parties who wish to bring in industry to a location.

He refused to confirm that the sale price was €3.25m.

Deputy Power said the location of the 115-acre site which previously housed the Burlington and Fitzpak plants at Gillogue on the outskirts of Limerick had been grossly undervalued by Shannon Development.

“This is a scandal. The site is alongside the new extended campus at UL on the Clare side of the Shannon which is already linked by a new bridge,” he said.