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HSE paid €1.35m over market value for Knocknacarra building


From this week's Galway City Tribune

From this week's Galway City Tribune

HSE paid €1.35m over market value for Knocknacarra building HSE paid €1.35m over market value for Knocknacarra building

From this week’s Galway City Tribune – The HSE has paid €11.85 million for the building to house its new ‘Integrated Care Hub’ in Knockncacarra – which is €1.35m over the open market value of the office block.

Confidential HSE documentation seen by the Galway City Tribune shows that Block A in Galway West Business Park – the former Aviva Insurance building – was independently valued at €10.5m.

The HSE subsequently paid €11.85m for the property.

According to the documentation, the building will cost €14.85m to fit out – however, that figure was based on construction costs in February 2022 and is expected to rise again due to inflation. Just seven months prior to that estimate, the fit-out works were costed at €10.8m.

A planning application is currently being put together for a new ‘Enhanced Primary Care Centre’ in the building, which will house Primary Care Teams as well as a unit for chronic disease management. A total of 105 staff will be based there.

When the matter was brought to the Board of the HSE nationally, they were told the purchase price was €1.3m above market value.

The other option shortlisted by the HSE was a ‘new build’ on lands at Merlin Park – this was costed at €33.1m because it would involve “considerable site upgrade works” and would much longer to deliver.
This is a shortened preview version of this story. To read the rest of the article, see the June 9 edition of the Galway City Tribune. You can support our journalism and buy a digital edition HERE.

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