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Appeal No. VA04/3/003 AN BINSE LUACHÁLA Green Property Ltd. APPELLANT RE: Office(s), Carpark at Lot No. 99, Sundry Townlands,
Pembroke West A, Pembroke West, County Dublin B E F O R E JUDGMENT OF THE VALUATION TRIBUNAL By Notice of Appeal dated the 30th day of June, 2004 the appellant appealed against the determination of the Commissioner of Valuation in fixing a rateable valuation of €10,713.00 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 at the Valuation Tribunal Offices, Ormond House, Ormond Quay Upper, Dublin 7 on 1st November, 2004. Mr. Adrian Power Kelly, FRICS., FSCS., a Partner in Harrington Bannon, Chartered Valuation Surveyors appeared on behalf of the appellant together with Mr. Willie Dowling of CB Richard Ellis Gunne. Mr. Terry Fahey, B.Sc. (Hons) Prop. Ec., Valuer in the Valuation Office appeared on behalf of the respondent. In accordance with the Rules of the Tribunal, both valuers, having taken the oath, adopted their respective précis, which had previously been received by the Tribunal as their evidence-in-chief. From the evidence so tendered, and from the evidence of Mr Dowling, the following emerged as being the facts relevant and material to the appeal. LOCATION AND DESCRIPTION OF SUBJECT PROPERTY The subject property is located at the intersection of Ringsend Road and South Lotts Road immediately adjacent to Shelbourne Park Greyhound Racing Track and opposite the former Irish Glass Bottle Factory and warehousing complex. Dublin city centre is approximately 2.5 kilometres to the northwest. Ringsend Road is a main arterial route for private and commercial vehicular traffic from the southeastern suburbs of Dublin city to the city centre and commercial areas centred on St. Stephen's Green, Merrion Square and Fitzwilliam Square. The property is a new five storey office block with ninety nine secure basement car parking spaces. Internally the property has raised access floors, air conditioning and five passenger lifts. Structurally the building is of steel and reinforced concrete frame construction with block walls with a mix of brick and granite clad external elevations. Windows are of double glazed type and the roof is of flat construction with protective waterproof membrane and chippings. The building is an open plan design suitable for either single or multiple occupancy. VALUATION HISTORY The Valuation History in respect of the property is as follows: TENURE It is understood that the property is held freehold. ACCOMMODATION The total accommodation is 9,990 sq.metres divided into five floors as
follows: THE APPELLANT'S CASE At the oral hearing Mr. Willie Dowling, CB Richard Ellis Gunne, Letting Agents for the building, gave evidence on behalf of the appellant. He stated that his firm started a marketing campaign for this building three years ago and that the building was completed two and a half years ago. It is still unlet in spite of a very serious marketing campaign. He outlined the difficulties in letting this, mainly that it is not in a prime office location, it is ten minutes from the nearest Dart Station and that it is difficult to find a tenant for an office of over 100,000 square feet. Mr. Power Kelly, for the appellant, stated that the property is situated
in a peripheral office location in what is a high-density residential
area with numerous former local authorities housing estates in the immediate
vicinity and that this is a modern office building on five levels. He stated that when looking at the NAV and tone of the list there was no direct comparison within this location to establish an NAV for rating purposes. However, he looked at similar quality buildings in Dublin 2 and Dublin 4 to establish a ratio between the NAV and the rental value and secondly to establish what is the discount vis-à-vis offices in these prime locations. This exercise established that the current rental value for a property in Ringsend is between 62 and 74 per cent of that for prime properties and this differential should be reflected in the net annual value and rateable valuation. Having regard for the foregoing, Mr. Power Kelly contended for a rateable
valuation of €7,950.00 which he calculated as set out below: In support of his opinion of net annual value, Mr. Power Kelly put forward details of various offices throughout the city as set out in Appendix 1 attached to this judgment. He also supplied photographs of the subject property. The average NAV per square metre of all his comparisons is €158 and applying a discounted rate of 69% gives an NAV per square metre of €111 and he values the subject property at €120 per square metre. RESPONDENT'S CASE Mr. Terry Fahey, for the respondent, agreed with the description of this building and with the areas. He contended for a ratable valuation of €10,713 calculated as set out below : Net Internal area 9990sq.m @ €164/sq.metre = € 1,638,360 In support of his opinion of net annual value, Mr. Fahey put forward details of four comparisons of modern office blocks in the general area. Details of these are as set out in Appendix 2 attached to this judgment. He also produced photographs of the subject premises and of his comparisons. He stated that the subject property is as good as any modern office building in Dublin. He supported his opinion of value with four comparisons, which he referred to in some detail. 1) Microsoft Ireland Operations Ltd., Grand Canal Street Upper FINDINGS The Tribunal has carefully considered all the evidence and arguments adduced by the parties and makes the following findings: The Tribunal agrees that the subject premises is as good as any of the Valuation Office's comparisons. However, in the Tribunal's view a discount should be given to take account of the inferior location. It is further away from the Dart Station and there is a higher density of residential development than office development in the immediate vicinity. DETERMINATION Having regard for the foregoing, the Tribunal determines the rateable valuation of the subject property to be €9,427 calculated as set out below: 9990 sq.metre @ €143.5/sq.metre = € 1,433,565 And the Tribunal so determines. |