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Appeal No. VA06/3/022
AN BINSE LUACHÁLA A. J. Edge APPELLANT RE: Factory at Lot No. 2Ddl/E, Solus Tower Industrial
Estate, B E F O R E JUDGMENT OF THE VALUATION TRIBUNAL By Notice of Appeal dated the 21st day of July, 2006 the appellant appealed against the determination of the Commissioner of Valuation in fixing a rateable valuation of €138.00 on the above described relevant property. The Grounds of Appeal as set out in the Notice of Appeal are: The appeal proceeded by way of an oral hearing which took place in the offices of the Tribunal, Ormond House, Ormond Quay Upper, Dublin 7 on the 1st November, 2006. Mr Eamonn Halpin B.Sc. (Surveying) M.R.I.C.S., M.I.A.V.I. represented the Appellant and Ms. Carol Spain, B.Sc. (Hons) Valuation Surveying, C.Dip. A.F., a Valuer in the Valuation Office, represented the respondent. At the oral hearing, both parties, having taken the oath, adopted their précis as their evidence-in-chief. In doing so Mr. Halpin made amendments to some details of his comparison properties, as shown at Appendix 1 to this Judgment. Location and Description The accommodation and agreed floor area of the property is: Appellant's case Mr Halpin stated that this Industrial estate comprised fairly basic accommodation by modern standards. He felt that the potential value of properties adjacent to the town of Bray had always been moderate. He also stated that when the valuation of the unit was revised in 1997, it was mistakenly thought that the eaves' height was 8 metres and he felt this might have accounted for the high NAV level adopted. He also felt that the Commissioner, in reaching his valuation, appeared not to have fairly compared the subject property against comparable properties of type and size within the Dun Laoghaire/Rathdown area. He stated that he had shown by his comparisons that the rate per square metre applied to the subject was excessive when compared to old style buildings within the Dun Laoghaire/Rathdown area. He referred in particular to his comparison number two, Xpert Systems, built in 1996 in a prime location in Sandyford Industrial Estate which had restricted head room similar to the subject and had a valuation of €27.34 per square metre (the same as he applied to the subject). He stated that it would be unjust to take the original ground floor area at the original rate per square metre of €41 when it had headroom of 6 metres and not make adjustment at revision when the headroom had been reduced to 2.8 metres. Mr. Halpin's comparisons are at Appendix 1 to this Judgment. Under cross-examination, Mr Halpin stated that he was unaware of any similar unit within this industrial estate with a similar type rental income. The reason why his valuation on the office floor area was so moderate was because these offices were very basic. They were similar to those in unit F, Solus Industrial Estate. The offices in this unit (ie Unit F Solus Industrial Estate) when revised in November 2005 were valued at €30.75 per square metre. This valuation was increased by the Appeal Officer to €41. Mr Halpin also stated that the subject property had an RV of €138 (ie €41 per sq. m. for offices & warehouse with €13.67 per sq. m for the mezzanine) and that, during the course of the first appeal, it was agreed that the mezzanine floor area was only 250 sq. m and not 288.75 sq. m. which the Valuation Office had used at revision. In order to maintain the valuation, the Valuation Office increased the level per sq. m. on the offices. Respondent's case Ground floor Warehouse 375 sq. metres @ €41.00 per sq. metre = €15,375 Her valuation, she stated, was made by reference to the values of comparable properties appearing in the valuation list for the Dun Laoghaire/Rathdown County Council area. Ms Spain said that the subject property is located in Solus Tower Industrial Estate, on the south side of Corke Abbey Avenue, close to the junction with the main Dublin Road about ¼ mile from the M11 motorway. She considered the subject property to be located in a mixed industrial and residential area on the northern outskirts of Bray. This industrial estate contained approximately 27 units of varying size and quality. The subject property comprised a semi-detached, industrial unit with concrete portal frame block walls and double- skin cladded roof. A new concrete mezzanine floor had been installed since the property was last valued. She introduced four comparisons, details of which are at Appendix 2 to this Judgment. She stated that her first three comparisons were from the same estate as the subject and she felt that using comparisons from the same estate was the more appropriate basis of valuation. Her fourth comparison was a modern industrial unit in Ballyogan Business Park. It was valued in 2001. It was a very remote location. No allowance was made in the valuation for the reduced headroom but instead a modest level was applied to the mezzanine to reflect the reduced headroom beneath. It was her opinion that where a mezzanine floor had been added, the building had been improved and that this should be reflected in the valuation. Ms Spain also referred to seven other properties of various sizes and qualities in the same industrial estate as the subject and said that six of the seven were valued at first appeal at the same level and in some cases higher than the subject. Under cross-examination as to whether her comparisons were similar to the subject in that they had a mezzanine with reduced headroom on the ground floor, Ms Spain stated that she would not agree that the existence of a mezzanine is required for a property to be comparable. Properties that are located in the same estate are similar in nature and type as they are all industrial units and she stated that the mezzanine was an improvement in the property. She accepted that the offices were moderate and that in her original report she valued them at the same level as Mr Halpin was seeking, i.e. at €30.75 per sq. metre. Findings and Determination In view of the foregoing, the Tribunal determines the net annual value and the rateable valuation of the subject property to be as follows: Ground floor Warehouse 375 sq. metres @ €41 per sq. m. = €15,375 RV @ 0.63% = RV €135.05 |