State ordered to pay €32m compensation to property developer

The State has today been ordered to pay damages of more than €32m to a property developer, for failing to honour a deal to hand over Harcourt Terrace Garda Station.

Durkan New Homes built 215 affordable houses for first-time buyers in return for the Garda Station, along with the adjoining film censor's office.

The deal for Harcourt Terrace was put together from a tender in 2006 at the height of the property boom when the site was worth six times its current value of €2.8m.

Durkan's intent was to build offices on the site but the swap with the State under the Affordable Homes Partnership never went through.

Even now, Harcourt Terrace Garda Station has only been partially vacated.

Durkan sued the State for compensation over its losses and has won. The Commercial Court has so far calculated damages at more than €32m but the question of interest will be looked at tomorrow.