State paid nearly €4m more than suggested for lands at Kildare's Castletown House

Ken Foxe

The Office of Public Works (OPW) paid nearly €4 million more than the price suggested in a valuation for lands at Castletown House.

A price of €11.25 million was agreed for the lands in Kildare, following what the OPW said was “a period of intense and confidential negotiations".

However, a valuation by estate agents Lisney said that the market value for the land ranged between €7.25 and €7.5 million.

The OPW said that, for strategic land, they sometimes bid “at a level in excess of the market value of an asset” to secure ownership.

They said this occurred where the acquisition would enhance the value of State land or where there was a significant history and heritage value.

The purchase of the 235-acre site at the historic estate was completed in November.

An information note said: “This purchase completes a long-standing policy objective of the OPW to see the historic lands at Castletown united in the title of the State.”

Records released under FOI also reveal the OPW tried to buy the land four years ago at around half the price eventually paid.

A letter sent to the Department of Public Expenditure said: “Sanction was declined in 2021 to complete an off-market transaction at a price of €5.75 million.

“The landowner subsequently placed the lands on the market for sale by private treaty and sanction was granted in 2022 to submit an offer, of the same value, in a ‘best and final offer’ process.”

However, the OPW’s bid failed and the land was bought instead by a third party.

That led to issues around access to Castletown House and a long series of protests by the local community.

A valuation sent with the letter put the value of the property at €6.95 million but said this did not account for the “heritage, social and amenity value” of the land.

It said that the State would be considered a “special purchaser” given the importance of the site and that this justified a higher bid to ensure a successful acquisition.

A response from the Department of Public Expenditure acknowledged that the ongoing dispute over access was causing “operational difficulties” for the OPW.

In the letter, the OPW chairman, John Conlon, was given the go ahead to start negotiations on condition all reasonable efforts were made “to secure the most competitive price possible.”

In September, the OPW wrote again to the department saying agreement had been reached to purchase the land for €11.25 million.

A letter said two offers were rejected by the owner of the land and that it became clear the bid would have to be increased.

An OPW official wrote: “While I appreciate that this figure is in excess of our request for sanction to enter into negotiations, the Special Purchaser status of the OPW cannot be ignored.

“The importance of the Castletown Estate to the local community, the OPW historical portfolio and to the State, and the benefits of securing these lands for the State is well documented in previous correspondence and cannot be overstated.”