Hundreds of tenants in Cork fear mass eviction

Hundreds of tenants face losing their homes after receivers moved to sell apartments at a residential development in Cork City.

Tenants of up to 127 receiver-controlled apartments in the Eden development in Blackrock face an uncertain future after receivers issued a notice to terminate tenancy to occupiers of some 35 units.

Twenty of those apartments have been vacated ahead of tomorrow’s deadline. However, the tenants of the remaining 90 are concerned they could be next.

A spokesperson for Grant Thornton, the receivers, said it has yet to decide what to do with the rest of apartments under its control.

The Eden situation, highlighted on The Seán O’Rourke Show on RTÉ Radio One yesterday, has similarities to the Tyrrels-town situation in Dublin, where a vulture fund is selling rented homes.

The religious Ursuline Order put its Blackrock convent building and 22 acres up for sale in 2001. It was bought for €13m by a development firm which secured planning for up to 550 units, plus the conversion of the main convent building to apartments.

The firm subsequently sold its interest in the land for a reported €30m before Pierce Construction went on to develop the Eden residential development on the former convent parkland.

Launched in 2005 with a mix of houses and around 300 apartments, it was described as a model for contemporary living, with apartments priced from €330,000.

In November 2010, IBRC appointed Michael McAteer of Grant Thornton as receiver to 127 of the units plus certain undeveloped land within the wider scheme. The receivers increased rents by up to 25% — from €1,000 to €1,250 — last April, prompting several tenants to take rental increase cases to the PRTB. In each case, the rent increase was upheld.

In a statement yesterday, Grant Thornton said it waited until the amendment of the Residential Tenancies Act was enacted last December before issuing the termination of tenancy notices to tenants. “This Act increased the notice periods to be provided to tenants thus ensuring the maximum period was provided in cases where vacant possession was sought,” said the receivers.

Sinn Féin called for emergency legislation to introduce a compulsory code of conduct for banks and funds, where they are selling buy-to-let properties that are rented.

TD Eoin Ó Broin (SF) said this code of conduct would give tenants an extended notice-to-quit period of up to a year and first option on becoming tenants in the property if is bought by a new landlord.

Fianna Fáil housing spokesman Barry Cowen said: “Vulture funds cannot be allowed to act with impunity by removing families from their homes. With the number of families becoming newly homeless in January at historic levels, more urgent and bolder actions are needed to keep families in their homes and to provide secure accommodation to families who have already lost theirs.”