Re: Re: Developments in Cork
@PVC King wrote:
It is pretty standard stuff but places the emphasis on expiration of the term. You would want to look for the ability of the landlord to enter the premises to effect repairs or serve an interim schedule of dilapidations. You are also reliant on the owner spending money on legals for something that will have no material impact in the short term. Service of a S59 notice may galvanise the superior interest owner who may in 2017 be able to un-encumber the reversionary interest and to keep options open that entity may be well advised to seek enforcement of the (fairly loose) repairing covenent to maximise the building value as with all ground leases the real value is the actual building which must be renewed at Open Market Rental Value unlike residential interests. I wouldn’t fancy the dilaps liability on that building in 10 years it could be a seven or even eight figure sum.
The tenant entered negotiations with a third party in 1999 to dispose of the lease which led to bad blood (and a seven year battle in the High Court) between the landlords, a British developer and themselves.
The Landlord (Port of Cork) served the dilapidation schedule on the 24th March 2000 (now withdrawn)
â€œWe now call upon you to comply in full with the above covenant having regard to the terms of the aforementioned letter from Mr. John Power, Building Control Officer, Cork Corporation (now Cork City Council) with particular reference to the south east corner of your premises and the Schedule of Dilapidations dated June 1999 which was served on you from this office.
We require confirmation from you within 14 days of the receipt of this letter that you will immediately take such steps as to remedy the breach of the above detailed covenantâ€
The POC won the final section of the High Court case 18 months ago and it was hoped the near loss of the Bonded Warehouses would have focused their minds as to the value of this site to Cork and the Country.
Unfortunately this does not seem to be the case as the building is in a state of near collapse.