Deputy Jackie Cahill TD
Fianna Fail’s Deputy Jackie Cahill has called on the Minister for Finance to instruct the Central Bank to investigate the behaviour of an Investment Company, Corestone Ltd, in relation to an estate in Tipperary Town.
Rosanna Close, Rosanna Road, Tipperary Town is an estate of approximately 50 homes.
Some 20 of these homes have been bought this year by an investment company, Corestone Ltd. Pepper Canister House, Mount Street Crescent, Dublin 2.
These families had privately rented the homes from the previous owner with some of them being supported by RAS and HAP. They had been rented on a 12-month rolling contract. Since being purchased by Corestone the families have been written to, telling them their contracts are to be terminated.
They have been informed that all 20 homes need to be vacated between November 2018 and April 2019 Cahill said he understood that Corestone intend to sell the properties.
Cahill went on to say that it is the practice of these Investment Companies to purchase financially distressed properties from the banks at a huge discount, they then manufacture a situation where there is vacant possession and then sell them for a huge profit.
Since 2011 these funds have entered the Irish economy and are completely unregulated by the Central Bank.
Deputy Cahill said: “I have been fighting this situation since I was elected in 2016 as it has caused untold damage to peoples lives and is doing so again here in Rosanna Close in Tipperary Town. We in Fianna Fáil have managed to progress legislation over the past 12 months to have these funds regulated and we are confident we can get this legislation passed this autumn. I have helped many individual families in their dealings with such funds over the past two years. But this is the first wholesale sale of family homes in a small estate that I have come across here in Tipperary”.
“The problem with these funds are that they have no stake hold in the Irish economy therefore they operate without even the minimal checks and balances that are there to regulate the regular banks,” said Deputy Cahill.
“The impact of evicting 20 families from a relatively small estate in a small town like Tipperary is devastating not only for the individual families but for the Town in general.
“The County Council will have to pick up the pieces of this scandal and at a cost to the tax payer.”
Meanwhile this Government allows these funds operate with impunity and without regulation and this cannot continue, said Cahill.
The Fianna Fail Deputy concluded by saying: “I have called on the Minister for Finance to instruct the Central Bank to immediately investigate the matter. I have met with many of the families affected. I have also contacted tried to make contact with Corestone to discuss the matter with them.”