Receiver sues hedge firm over €1.9m office rent
AN investment company is in dispute with a receiver over around €1.9m it allegedly owes in arrears for rent of two floors of a building at St Stephen's Green in Dublin, the Commercial Court heard.
In February 2008, Shelbourne Development (Europe) Ltd (in receivership) rented the first and second floors of number 75 Stephen's Green to international hedge fund company, Hedgeserv Ltd.
James Kelly, a founder of Hedgeserve, acted as guarantor on the 25-year lease.
The initial annual rent was €2.2m, including €76,000 for the use of 17 car spaces.
On December 8 last year, Michael McAteer, a partner in Grant Thornton accountants, was appointed receiver over Shelbourne after the property investment company defaulted on loans to Bank of Scotland (Ireland) Ltd.
Yesterday, Mr McAteer applied to have an action over some €1.9m in outstanding rent due from the defendants admitted to the fast-track Commercial Court.
The application was opposed by Rossa Fanning, counsel for the defendants.
Mr Justice Peter Kelly was satisfied there was no culpable delay on the part of Mr McAteer who, he said, was only appointed receiver last December.
He transferred the matter to the Commercial Court and adjourned it to October 17.