Sign in. It’s quick, free and it’s up to you.
An account is an optional way to support the work we do. Find out more.
A CONVENT BUILDING and site beside Dublin’s Beaumont Hospital was sold by the Sisters of Mercy to the HSE for over €2.7m last year – despite being listed for €1.9m just six months earlier.
Beaumont Convent and its 0.56 hectare site was put on the market for €1.9m. An independent valuation obtained by Noteworthy recommended a bid of €2.7m be placed by the HSE in a closed tender process which took place in October 2020.
In April 2021, the sale was finalised and the convent was sold to the HSE for €800,000 over the asking price.
“The Beaumont Convent Building has strategic value for the HSE and Beaumont Hospital,” according to a spokesperson for the HSE.
The spokesperson added: “This value relates to the building’s location adjoining the Hospital Campus and its suitability for the relocation of non-core hospital functions from strategically important sites within the hospital thereby facilitating important future developments.”
The brochure of the 1,000 sq metre-plus building mentions “the proximity to Beaumont Hospital” as “a feature”. It also states it comprises of four reception rooms, 21 bedrooms as well as kitchens and bathrooms.
A 40% increase on asking price
Noteworthy asked the Sisters of Mercy why it was sold with a 40% increase on the asking price and if the order offered the HSE the option of buying the property before putting it on the open market.
A spokesperson for the religious order said that the property was fully owned by the Sisters of Mercy and “was sold after an open and transparent tender process”.
They added that “an indicative price was given to interested parties, a standard part of the tender process”.
In response to a query about the price paid, the HSE spokesperson said that they had it valued by an independent expert as to the market value.
The HSE submitted a bid in accordance with that advice received in a closed bid tender process. It was the view of the independent expert that the asking price for the property was below value to attract market interest.
Noteworthy obtained this independent valuation through a freedom of information (FOI) request and it stated that there were “no offers in to date” before advising a bid of €2.7m.
At the time of the valuation, “over seven tender packs” had been “requested from interested parties”, with four of these “gone out to property developers”.
An insight into the sale by the Sisters of Mercy is included as the report stated: “There is no appetite on the vendors side to move away from the tender process.”
The chartered valuation surveyors took three approaches to valuing the property. The highest, at just over €2.6m was based on transactions “recently conducted or agreed” by their office of protected buildings in Dublin 1 and Dublin 2 . A development site in Dublin 11 was used to calculate the development value of the land.
The report also included other valuation approaches based on commercial use – €2.1m – and residential use – €1.9m – which were closer to the original asking price.
It concluded that the first – and highest – valuation method was preferred “as it is based on transactions of older period buildings conducted by this office in the real world”. It added:
The acquisition of this property has in our view additional value to the HSE having regard to the proximity of the property to Beaumont Hospital. This additional value would include the opportunity to open up an additional vehicular access point in to Beaumont Hospital complex. In summary our advice is for a bid of €2,700,000.
This bid was almost €100,000 higher than the top valuation in the same report.
Designated as protected structure
In the latest HSE National Service Plan – published in January 2021 – it accounts for a total cost of €4.23m for the freehold acquisition of Beaumont Convent and “upgrade for admin accommodation”. Just €1.52m of this was included in the 2021 capital costs.
The HSE spokesperson told Noteworthy that after its purchase, Dublin City Council (DCC) designated the convent building as a protected structure.
The spokesperson explained that this meant “planning consent became necessary for the proposed change of use prior to development proceeding” and the hospital’s design team “are currently in dialogue” with DCC before “submitting a planning application”.
Fixtures and fittings removed
In their evaluation of the convent, DCC’s Deputy City Planner compiled a report last June which included the history of the site. It stated that “by the turn of the 20th century Beaumont House and lands had been sold to the Sisters of Mercy”.
It also mentioned the “ceding of lands” for the construction of a nearby secondary school in the 1950s and Beaumont Hospital in the 1980s. Beaumont House – the estate’s Georgian farmhouse, was “transferred” to the HSE a number of years ago.
An “extensive housing development” was also built on the lands in the 1990s, with eight acres preserved as a public park.
In around 2010, “the Sisters of Mercy commissioned a review of their property” at Beaumont, which resulted in a number of distinct “property portfolios”, with the convent being separated from the remainder of the site, according to the DCC report.
In regards to the Beaumont Convent, the report stated it was sold due to “a declining community of much reduced numbers”, as well as the following:
“Fixtures and fittings, identified as being of liturgical or devotional importance were removed by the religious order as part of the sale agreement and have been relocated to various parish churches within the archdiocese of Dublin.”
HOLY LAND Investigation
How much money are religious orders pocketing from lucrative property sales?
Through Noteworthy, we want to follow the money trail by investigating sales of properties and land by religious institutions over the past number of years.
To embed this post, copy the code below on your site
Bit of a silly idea really, shipping will be a thing of the past soon with 3 D printers, I bought one recently, would anyone like me to print them another one?
Yeah I’ll have one. Cheers
‘Opposing it is unpatriotic’?
Haven’t we had governments that have used that phrase before?
Seems like a mad idea / publicity stunt
The Chinese bubble is about to burst, that should put an end to this idea.
Nah its not. They own most of America’s debt and also have massive export market. They can go to the wall several times before failing.
Jason, where is Chinas largest export market? The USA, you might want to do a rethink with your comment.
Declan, look at anything you buy and think where was it made. Hell, look at the clothes you’re wearing, providing you’re clothed, they were most certainly made in china. Sure the label might say another country but that country only put a button or such on the garment to be able to say that. The label was printed and sewn on in china even lol
Dont need to Declan. Emerging economies and existing ones worldwide will easily fill the gap the Americans ‘may’ create.
May want to rethink yours tbh.
Sound familiar? ” State-run enterprises controlled most of the money flow, pouring borrowed cash into housing construction and other speculative investments. In 2011, spending on plant, machinery, buildings, and infrastructure made up an amazing forty-eight percent of China’s GDP.”
How long can China continue to keep the lid on wages? The extraordinary rate of growth in the Chinese economy has concealed the smoke and mirrors aspect of their economy and the massive uncontrolled lending and borrowing which powered the growth. The USA looks likely to devalue the dollar soon and that will surely knock a hole in the value of the American bonds held by China { They don’t hold most of the bonds BTW, Saudi and Russian holdings exceed the Chinese ] Looks like fun on the way, not new canals.
Jobs for the buoys…
Why not ? Build it they will come, competition is good right?
Maurice, economically unfeasible, did you not read the article?
Bondholders!!!!!!!!!!!!!!! They are building it with the billions that was extorted from the Irish tax payer. It is refreshing to see our hard earned money being put to good use Mr. Kenny and Mr. Gilmore!
Normal
Is that one of the most ill-researched and poorly conceived comments of all time on the journal? I think so.
Is there any mention of European investment in this article?
Do you seriously think the Chinese are so in need of cash that they’re in some way reliant on the piddling debt of Ireland?
I’d pity the Chinese if they were relying on us to pay off our debt as they’d be waiting a long time for all the people grumbling about burning bondholders to pay their mortgages.
These two things are wholly unrelated but if the Chinese had leant our banks money I’d say they were entitled to it back. It wouldn’t be their fault that every tool in the country thought building houses was the easy alternative to an education and hard work and borrowed beyond their means.
Are you serious?
@Gerard my comment was primarily put out in jest. Neither you are I can state who are the Bondholders that are receiving billions of our taxes.
Given that, the first port of call after the property bubble burst, where representation was made on behalf of the Irish government to increase trade (we were told) was China and they in turn paid a visit to Ireland? Gerard it is a pity we didn’t have experts like you to warn us of the property collapse all you academics kept that information to yourselves. I bet if you had been told in 2007 that Europe’s Economy and the USA were going to collapse you would have stated, ” I’ll researched and poorly conceived comments.” If we didn’t have wannabe Economists like you, we would all be in a better place now!
Name the bondholders Gerard before you criticise, then you can uphold your criticism? Because even if I am wrong you can not prove that, thus remain the unmasked bondholders!
Gerard ” every tool in the country” were advised by the FF cartel to invest in the property ladder and don’ t get left behind. Why are you angry at the people and why did you state that if China ( and you do not know) was one of the unmasked bondholders, that they would deserve their money back? We all didn’t party, most invested for retirement and in their future and their families future and lost everything. The bondholders invested out of greed and lost, but our CRIMINALS in government FF-FG-L are paying them back out of our taxes and when our taxes were not enough they taxed us more and our homes!
“Advised?” Could you not have used common sense?
Sounds like an excellent idea would create a huge boost for Nicaragua after all the wars and suffering it has endured
There are two main reasons this is a bad idea:
1) the massive Panama Canal expansion project that is nearing completion, massively increasing the size of ships that can transit the canal (and thus massively increasing the annual freight-tonne throughput of the canal, again using optimistic forecasts); and
2) the fact that shipments from china to both the east coast of the USA and Europe will be a lot shorter for most of the year if global warming continues and the north west passage becomes more navigable (at least in summer time).
Given that shipment times on this canal will be longer than Panama, the fact it is slightly further north won’t help that much in terms of time saving. They’d need to charge lower fees than Panama to make it worthwhile and with the infrastructure in place, Panama could cut prices in the morning without massive difficulty (albeit it would cause some given the cost of the lock expansion project) as the only competitor they’ve had to date is Cape Horn. Basically, it seems like at best an ill-advised plan and at worst a mad one.
I’m also not sure $40bn is enough or close to it.
Im packing the bags when id it starting
Why does the heading say 30 billion but then the article itself says an estimated 40 billion? Bit of major difference.
Two different currencies.
€ $
Dollars and euros.
have your say