State paid more than valuation for €11m Dowth Demesne

The State ended up paying €11 million for a country estate to create a new national park despite a valuation that said the market value of the property might be up to €1.5 million lower than that price.

The purchase of Dowth Demesne in County Meath was announced by the Government last autumn with the state the only bidder for the 550-acre property.

A valuation report, released under Freedom of Information laws, put the value of the estate at between €9.475 million and €10.345 million, with an estimated midpoint given by Lisney of €9.91 million.

An internal Department of Housing email said the sellers would be “amenable to an offer of €11 million” for the property.

It said the state would likely be expected to pay a premium for the property because they were considered a “special purchaser” of the land.

A business case for the acquisition said that while the sale of the property had generated a “high degree of interest” this had not necessarily translated into any concrete bids.

The business case explained: “The natural heritage designations and the high-level of significant archaeological heritage across the estate, including the recently discovered passage tomb, might be perceived as a complication and a financial drain for potential buyers.”

It also said the State could expect to spend a further €23 million over the next five years on securing and preparing the site as well as ongoing staff and operating costs.

Between €250,000 and €300,000 would be needed as well for completion of archaeological works on the Dowth Hall passage tomb, which had only been found a few years ago.

A further spend, ranging from €300,000 to €750,000, would then be required for the conservation and presentation of the ancient monument.

Among the risks considered for not going ahead with the purchase was the possibility of a sale to another buyer that could lead to “inappropriate development” near the Brú na Boinne UNESCO world heritage site, which includes Newgrange.

It added: “Failure to acquire Dowth could see the integrity of this uniquely preserved cultural and natural heritage landscape, its ecosystems, natural biodiversity and its aesthetic qualities broken up.”

A later submission for Heritage Minister Malcolm Noonan last December said the €11 million bid had been accepted and a €150,000 booking deposit had already been paid.

Officials said the purchase would also include “extensive chattels and goods, furniture and fittings, as well as intellectual property from the [seller’s] own research” on agriculture.

In a statement, the Department of Housing said the purchase represented a “once in a generation opportunity” for a site that encompassed 5,000 years of Irish history along the River Boyne, as well as a working farm at the frontier of nature science.

A spokesman said: “The purchase price is inclusive of the real estate, the research laboratory and equipment, the field and soils’ research undertaken at the Lighthouse Farm and the intellectual property and right of use of that research.”

“The purchase price, notwithstanding the inclusion of the additional components, is within the range of the independent expert valuation carried out on behalf of the National Parks and Wildlife Service of the value of this UNESCO, World Heritage estate.”

“The purchase was subject to a detailed business case and evaluation, and duly approved after significant interrogation by the Department of Public Expenditure and Reform.”

– reporting Ken Foxe