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Former Galway monastery on 173.5 acres offers scope for residential or hotel at €3.75m
Having announced the closure of its monastery at Esker near Athenry in February 2022, the Redemptorist Order has retained agent Bannon to find a buyer for the property and its wider 173-acre estate. The former religious complex is being offered to the market in one or more lots at a guide price of €3.75 million.
Esker comprises a multi-phase property arranged around a former monastery building, adjoining retreat centre (former seminary) and a deconsecrated church. The existing buildings within the complex extend to a gross internal area of about 4,559 sq m (49,072 sq ft). The main buildings within the complex are interconnected via single-storey links and comprise a total of 82 bedrooms in their existing layout.
The accommodation is occupied under a short-term licence agreement with the Minister for Children, Equality, Disability, Integration and Youth for the purpose of providing temporary housing for refugees from the ongoing war in Ukraine. The licence is due to expire in July.
In addition to the above complex, the sale also includes substantial agricultural lands and woodland with the entire holding extending to 173.5 acres.
Given the likely interest of prospective purchasers in one or more, or all of the property, Esker is being offered for sale in the following lots with the exception of the former monastery’s burial ground, which is excluded from the process:
- Lot A Esker Buildings on about 23 acres
- Lot B Agricultural lands comprising 41.5 acres.
- Lot C Agricultural lands comprising 45.6 acres.
- Lot D Agricultural lands comprising 43.9 acres.
- Lot E Agricultural lands comprising 19.6 acres
Esker is east of Athenry, close to the M6 motorway and its intersection with the M18 (serving Ennis and Limerick) and M17 towards Tuam and Ireland West Airport. Galway City is about 30km west of the subject property.
Commenting on the sale, Niall Brereton of Bannon said: “Esker has been steeped in the history of this region for over three centuries. There is an opportunity for a new purchaser to continue this property’s enduring legacy. The scale of the existing buildings and landholding could lend itself to a multitude of potential uses in the leisure and hospitality sectors (subject to planning permission).”
Charlemont Quarter
Our first land sale of 2024 has just completed! We wish the purchasers all the best with the future development and look forward to seeing this scheme of 19 apartments being delivered.
Thanks to Robert Nowlan of RW Nowlan & Associates and Ruairí O’Donnell & Shane Sweeney of McCann FitzGerald LLP for their input and assistance in getting this sale across the line.
Residential Zoned Land Tax (RZLT) Update
Among the recently announced package of fiscal measures introduced by the Government as part of Budget 2024 was a 12-month deferral of the Residential Zoned Land Tax (RZLT). The tax liability, which was due to be paid by landowners as and from 1st February 2024, will not now fall due until February 2025. The RZLT equates to an annual liability equal to 3% of the market value of land which is deemed suitable for residential development.
While the 12-month deferral will no doubt be a welcome development by liable landowners they will face a choice as to the future prospects for their property. Among others, the Bannon Development Land Team has identified three fundamental options open to impacted landowners:
1. Dispose of the land
2. Seek a re-zoning of the land via the Local Authority
3. Undertake residential development.
Under the third option, the RZLT liability will only cease to accrue when completed residential units are delivered and will continue to be incurred during the construction phase.
While the option to seek a re-zoning from residential uses will ultimately result in the tax liability being removed it will also result in a significant diminution in the value of the land. This may not be such an issue for certain owners such as farmers whose primary interest is working the land. However, the vast majority of landowners may be very reluctant to actively seek to diminish the value of their property via rezoning.
Whatever the ultimate course of action it is clear that a lot of important decisions will need to be made by landowners impacted by RZLT in 2024. If this impacts you, talk to the team today to start planning your strategy early.
Author: Niall Brereton, Director, Bannon
Date: 14th November 2023
Acquisition of Unit 2B South West Business Park
Following the recent practical completion of Phase 1, South West Business Park by Rohan Holdings, Bannon is pleased to announce the acquisition of Unit 2B on behalf of a client in the healthcare sector. South West Business Park is located just off the Kingswood interchange on the M7 and adjoins the Cheeverstown Luas stop in Citywest. When completed the Business Park will comprise five units extending to approximately 323,000 sq ft. Unit 2B is a state-of-the-art facility extending to just over 20,000 sq ft and has 12m clear internal eaves height, dedicated yards, electric-vehicle charging facilities and LEED Silver sustainability credentials. We are particularly pleased to have secured this facility for our Client given the ongoing shortage of prime warehouse/logistics space within the Greater Dublin Area.
Niall Brereton, Director of Bannon represented the occupier.
New Dublin City Development Plan 2022-2028 and Changes to Z15 Land Use Zoning
The new Dublin City Development Plan for the period 2022-2028 came into effect on 14th December 2022. The Plan establishes the planning framework for the evolution of the City over a six-year period. One of the most notable changes brought about in this Plan are the restrictions placed on the potential future development of lands zoned ‘Z15 – Institutional and Community’. The Plan states that any residential or commercial development on such lands would only be considered in “highly exceptional circumstances”.
It is estimated that some 1,800 acres of land throughout the City Council administrative area are zoned Z15. While a significant portion of this total comprises existing educational and healthcare facilities, a significant proportion comprises lands privately owned by religious organisations including the Archdiocese of Dublin. In an era where consolidation of parishes is likely to become more prevalent, these properties, which are typically centrally located within local communities, could offer the potential for repurposing as social or private housing and go some way towards the addition of much needed residential stock across the capital. It appears contradictory that the new Development Plan has limited the future development potential of these lands in a time of chronic need and when creative solutions are required most.
Niall Brereton BSc MRICS MSCSI is a Registered Valuer and Director of Professional Services at Bannon.
What exactly is the Residential Zoned Land Tax (RZLT)?
A contentious and topical issue for some time now, the Residential Zoned Land Tax (RZLT) will impact a range of stakeholders across the development land sector. The RZLT, which was introduced in the Finance Act 2021 effectively replaces the Vacant Site Levy, with a similar objective of increasing the supply of residential accommodation.
As an annual tax charge, it will be calculated at 3% of the market value of land zoned suitable for residential development which is or can be readily serviced. Each local authority is obliged to generate a residential zoned land tax map, with draft maps published from the start of November 2022.
Land suitable for residential development from the 1st of January 2022 and development not commenced prior to the 1st of February 2024 will be liable for taxation. Landowners seeking to be omitted from the tax have until the 1st of January 2023 to make an appeal to their Local Authority. Impacted landowners will be expected to self-assess or engage with a registered valuer to conclude the market value of their land in anticipation of the 23rd of May 2024 tax return date.
The limited circumstances under which the RZLT may be deferred include the following:
– Planning permission has been granted in respect of the residential land and a commencement notice, in respect of the residential development, has been lodged with the relevant Local Authority.
– If an appeal relating to the inclusion of the site on the register has not yet been determined.
– Judicial review or appeal to An Bord Pleanála is brought by a third party in relation to the planning permission that was granted.
For more information on the potential implications of RZLT contact nbrereton@bannon.ie.
Mullingar religious lands with residential potential guiding at €2.75m
The combination of current and expected future demand for housing in Dublin’s commuter belt counties should see strong interest from investors and developers in the sale of a 12-acre land holding in Mullingar, Co Westmeath.
The lands, on the Dublin Road and just 700m from Mullingar town centre, are being offered to the market by joint agents Bannon and James L Murtagh & Sons on behalf of St Finian’s Diocesan Trust at a guide price of €2.75 million.
The subject holding surrounds the diocesan office, which the trust is retaining for its continued use, and is distributed across two parcels of land extending to a combined area of about 4.85 hectares (12 acres). The entire holding is zoned “Proposed Residential” in the Mullingar Local Area Plan 2014–2020 (as extended). An architectural feasibility study prepared by Altu Architects indicates potential (subject to planning consent) for the development of a housing scheme of about 116 units, comprising 27 two-bedroom houses, 35 three-bedroom houses and 54 four-bedroom houses.
While the lands have a sylvan setting adjoining St Paul’s Catholic Church, St Colman’s National School and Clonard House, they are near all the amenities of Mullingar.
Mullingar is a well-established commuter town and sits about 80km or a one-hour drive from Dublin via the N4 and M4 motorway. The town is also served by mainline rail services.
Niall Brereton of Bannon says: “This is a rare opportunity to acquire a development site in one of the most desirable residential locations within the Dublin commuter belt. Mullingar is a highly accessible town given its proximity to the N4 as well as Mullingar train station offering daily services to and from Dublin city centre. The subject land has terrific development potential, subject to planning permission, and will appeal to developers seeking opportunities to deliver new housing units in an area of high demand.”
Enhanced PART V Obligations
The Affordable Housing Act 2021 brought about changes to the Part V process. The most significant change is the requirement for new housing developments granted planning permission after 3rd September 2021, to have a 20% rather than 10% Part V (social and affordable) provision. Of the increased 20% provision, at least half must be allocated for social housing support. The remainder can be used for affordable housing which can be in the form of either a purchase or cost rental (or a combination of both).
The over-arching aim of Part V provisions is for the State to capture a portion of the increase in land value resulting from the granting of planning permission for qualifying residential developments. According to the Government’s Housing Agency, the preferred option which should be pursed by local authorities is the acquisition of completed units on the development site, by means of a transfer to the local authority or to an Approved Housing Body (AHB). The net monetary value (NMV) obtained by the local authority must be the equivalent of 20% of the difference between the market value of the land on the date on which planning was granted and the existing use value.
For a development site with planning permission and a market value (MV) of €3 million and an existing use value (EUV) of €500,000, the NMV due to the Local Authority will have increased from €250,000 at a 10% obligation to €500,000 at a 20% obligation. Therefore the determination of an appropriate market value has considerably greater significance to the overall costs associated with any proposed scheme of development. Importantly, Section 96(7) of the Planning and Development Act provides that either party can refer the matter of NMV for determination by a Property Arbitrator in the event of disagreement with the Local Authority or their representative. However, any reference to Arbitration needs to be done in a timely manner as the conveyance of completed residential units will be contingent on the Part V issue being resolved.
Niall Brereton BSc MRCIS MSCI is a Registered Valuer and has considerable experience in preparing Part V Valuations on behalf of landowners and developers and negotiating agreements with Local Authorities.
‘Mixed Use’ lands with significant potential for development sold in Drogheda.
Bannon were delighted to act on behalf of client, Belgard Estates Ltd (a subsidiary of CRH plc), in the sale of their lands at Slane Road. It is a substantial landholding on the outskirts of Drogheda which extends to a gross area of approximately 18.6 ha (45.6 acres).
The entire site is zoned ‘Mixed Use’ in the Louth County Development Plan 2021-2027 and presents an excellent opportunity to advance a mixed-use scheme with residential and commercial uses, subject to planning permission. M1 Retail Park, which is occupied by Woodies, Smyths, Sports Direct and Dealz is situated less than 500 metres to the north-west. Drogheda is earmarked to further expand on its status as the largest town in Ireland with a target population of 50,000 by 2031. The town has been designated a self-sustaining employment centre on the Dublin-Belfast (M1) Economic Corridor.
The property garnered significant interest from a range of parties. Following a tender process, a local property speculator secured the property. The guide price was €3.75m.
