A company of developer John Ronan which developed the Medical Council’s headquarters in Dublin has brought a legal action over its entitlement to ensure the annual rent paid for that property does not fall below €820,000 as fixed in 2008.
The proceedings by Tanat Ltd against the council were transferred on consent of both sides to the Commercial Court yesterday by Mr Justice Peter Kelly. The case, which has been returned to October, is likely to have implications for others in similar circumstances. The council had initiated different proceedings seeking the determination of issues under the Land and Conveyancing Law Reform Act 2009, which provides for downward rent reviews in certain circumstances, but Tanat argues the issues between the sides would be best determined in the fast-track Commercial Court. The council is to make a counter-claim in the action.
The council took possession of the Kingram House property at Kingram Place, Dublin 2, in March 2008 under a five-year short-term lease and Tanat insists the council, under various agreements, is required to enter into a 20-year lease from January 2013, on terms allowing only for upward only rent reviews.
