University of Limerick pays 'significantly above market price' for student accommodation
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The President of University of Limerick (UL) has admitted the college paid “significantly above market price” for student accommodation, to the tune of over €5m.
In a letter to staff on Friday, Professor Kerstin Mey said it was a “matter for regret” for her as President and a “major concern for the University in terms of management, governance and reputation”.
The property in question is located in Rhebogue on the outskirts of the campus and is the latest example of UL significantly overpaying for a property in the city.
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Furthermore, it recently emerged that the 20-house scheme in Rhebogue was in use without the proper planning permission for student residences. The university said it was engaging with Limerick City and County Council on the matter.
This development was originally valued at just over €11.4m, but a review found this to have been inflated and it was only worth around €6.2m.
Ms Mey told staff: “The university will have to absorb the resulting draft impairment, a sum in the region of €5.2m, in our financial accounts.
“This, coupled with the impairment arising from the purchase of the city centre campus, of which I have already advised you, will result in our financial year end position ending in deficit – when a surplus had previously been anticipated.” She said that this will be funded from the university’s financial reserves.
Furthermore, Ms Mey said a full review would explain the compliance, decision-making process and governance of the key aspects of the transaction.
“I am aware that there is frustration and anger among staff members that this has happened so soon after the issues that arose in relation to the city centre campus,” she said.
“I am engaging with our stakeholders to chart the best way forward and there will be action taken as a result of the review that has been commissioned into the transaction.”