How builder, brokers and private investors did secret €18m deal for school lands
DEVELOPER Bill Durkan and a consortium of private investors assembled by two former brokers at Davy have emerged as the buyers of 7.5 acres of playing fields at Clonkeen College in south Dublin.
The Christian Brothers are set to secure in the region of €18m from the sale. The Irish
Independent has established that Mr Durkan, one of Ireland’s biggest home builders, first approached the order in May of last year to express his interest in acquiring the land for development.
The approach is understood to have been readily received by the Christian Brothers and the Edmund Rice Schools Trust – the company and charity legally responsible for the congregation’s schools and its property.
Confidential discussions between the parties commenced immediately.
The Irish Independent further understands that simultaneous to those negotiations, Mr Durkan had discussions with Lugus Capital – a company headed up by former Davy brokers, Peter Horgan and Tim Cahill, with a view to putting the finance together.
Established in 2013, Lugus Capital is, according to its website, “skilled at identifying key investment opportunities in the property sector”. It has been involved in the “profitable acquisition of 700 residential development plots in Dublin and a portfolio of multi family residential units containing over 150 apartments”.
The company is funded through its own resources and those of its funding partners which consist of “several high-profile partners, including family offices, high-net-worth individuals and credit and private equity funds”.
It is understood the €18m the Christian Brothers will shortly receive from the sale of the playing fields will be comprised of monies provided by Mr Durkan, Lugus Capital itself, and the consortium of Irish and international private investors assembled last year.
Mr Durkan’s approach to the Christian Brothers came just weeks before the school presented its own plan to the Edmund Rice Schools Trust for the development of an all-weather facility on the same playing fields.
While Clonkeen College awaited a decision on its proposals, the Christian Brothers continued its negotiations with Mr Durkan and his associates.
It is understood that the sale was agreed between the parties last September – a full eight months before the congregation’s representatives informed the school of its intention to dispose of the lands.
Records held at the Companies Registration Office show that two special purpose vehicles relating to the lands’ acquisition – Clonkeen Asset Management Ltd and Clonkeen Investments Designated Activity Company – were established in July and October of last year respectively. Peter Horgan of Lugus Capital is listed as a director with both companies.
Binding contracts for the sale of the school playing fields are understood to have been signed two months ago – a month before the Christian Brothers informed the school’s board of
management of the deal.
A spokesman for Mr Durkan declined to comment on the transaction when contacted by the Irish
Independent yesterday. Clonkeen’s principal, Edward Melly, has been strongly critical of the Christian Brothers’ conduct – calling for the Department of Education to take over the school and for the Edmund Rice Schools Trust to step aside.
However, the Christian Brothers have, for their part, sought to minimise the impact of their actions.
The Brothers have instead focused on the benefits they say will accrue to the school, pointing in a statement to the transfer ownership of 3.5 acres of land bordering Clonkeen College to the Edmund Rice School’s Trust for the permanent use and benefit of Clonkeen College along with the 3.1 acres (occupied by the school buildings) transferred with the school in 2008.
The Brothers have also stated their intention to donate €1.3m (inclusive of a €300,000 contribution for school works) to Clonkeen College from the proceeds of the sale. The sale is necessary, the Brothers say, to meet a €10m liability to the redress board for historical abuse of children who had been in their care, and also for the future support of ageing brothers.
News of developer Bill Durkan’s acquisition of the Clonkeen College lands comes just days after the
Irish Independent revealed that another of his family’s companies – Durkan Estates Clonskeagh Ltd – has bought a 5.4 acre site beside Our Lady’s Grove Primary School at Goatstown Road.
The Religious sisters of Jesus and Mary are understood to have secured in the region of €13m for the site – which is 30pc more than the €10m which had been sought by WK Nowlan Real Estate Advisers when it brought the property to the market in March.
The land has the potential to accommodate between 70 and 80 houses and apartments, according to a development appraisal prepared by WK Nowlan.
Parents of children attending Our Lady’s Grove Primary School and Jesus and Mary College had voiced their objections to the sale, arguing that the schools would be left with no green space and no room to expand in the future.
But the nuns have defended their decision to sell, saying the income it delivers will be used to support the congregation’s other ministries, including overseas missions and the ongoing care of sisters, a number of whom would have taught in the two schools.