Property Acquisition & Disposal Policy

The University and its subsidiary companies are committed to the effective and efficient management of assets in line with the principles of good corporate governance. This policy is intended to guide the process for acquiring and disposing of property, as well as the disposal of equipment, ensuring compliance with applicable legislation, regulations, and best practices while also aligning with the University's strategic goals.

The purpose of this policy is to establish the framework for the acquisition and disposal of property assets, as well as the disposal of equipment, and includes outlining the requirements for strategic alignment, governance, appraisal, due diligence, and implementation processes.

The policy aims to ensure that all transactions in property (as defined herein):

●    Deliver value for money; 
●    Are transparent and well documented;
●    Are based on consistent appraisal processes including engagement and advice from external advisors; 
●    Adhere to all relevant legal, regulatory, and governance requirements, including the Government’s Infrastructure Guidelines; 
●    Support the University's strategic objectives; & 
●    Ensure the University's interests are protected.
 

This policy applies in every instance where property (As defined) is being proposed for acquisition or disposal, as well as where equipment is being proposed for disposal. 

Property for the purpose of this policy is defined as:

• Acquisition of Property – includes land, campus, buildings and similar structures

• Disposal of Property – includes land, campus, buildings structures and similar structures owned or leased by the University (note: licence and/or lease arrangements on the DCU Innovate hub (innovation campus) are excluded where such arrangements are on commercials terms, are less than 5 years, and approved by the Board of DCU Invent DAC). 

• Disposal of Equipment – includes the disposal of equipment, including teaching, research, lab, office and computer equipment.

This policy applies to all units of the University, both academic and support, including its research centres and its subsidiary campus companies. These are all hereinafter collectively referred to as the ‘University’.

A. Property Acquisition and Disposal (excluding equipment)

The acquisition and disposal of property by the University shall be conducted according to the following principles and requirements:

1)    Strategic Approach: Decisions must align with the University's overall strategy statements and business plans. Regular review of the University's Estate portfolio is necessary to identify expansion and/or consolidation needs, and opportunities for acquisition or disposal.

2)    Governance and Compliance: All property transactions must comply with relevant legislative, regulatory and internal policy requirements, including but not limited to the relevant provisions of the following:

a)    Universities Act 1997
b)    Code of Governance for Irish Universities 2019 (and State Code of Governance 2016)
c)    Government’s Infrastructure Guidelines

3)    Business Case / Appraisal Process: A formal transaction evaluation process is required in respect of all property transactions and must be documented. This will include, but is not limited to, the following:

a)    Defining the objective or need in broad terms;
b)    Exploring and analysing viable options;
c)    Quantifying costs or potential income, specifying funding sources for acquisitions, and the impact of the proposed transaction on ongoing revenues and operating costs;
d)    Lifecycle costs should be used where appropriate;
e)    The appraisal must demonstrate that value for money considerations have been taken into account;
f)    Identifying and assessing risks associated with each option;
g)    Deciding on a preferred option, using methods like multi-criteria analysis where appropriate. For disposals, maximising sale price should not be the sole criterion; impact on the public service and local community must also be considered;
h)    Engagement with relevant internal departments, including the Finance Office and the Estates Office
i)    Engagement with external advice across relevant disciplines, including legal, valuation, tax, property, planning, etc
j)    Necessary funding and approvals for acquisitions must be identified;
k)    Making a clear recommendation to the appropriate Decision-Making Authority (i.e. to DCU Executive for initial consideration, and then the Governing Authority for decision following a review by the relevant Sub-Committee of Governing Authority).

4)    Implementation and Professional Advice: Once a decision in principle is made to acquire or dispose of property, the implementation phase requires further early engagement of professional advice across various disciplines where appropriate, including from legal, valuation, planning, structural, mechanical, electrical, taxation and environmental experts.

5)    Stakeholder Communication: The University has legislative and regulatory obligations to communicate with key stakeholders such as the Higher Education Authority, the Department of Public Spending NDP Delivery and Reform, and/or the Minister for Further and Higher Education, Research, Innovation and Science on matters pertaining to property transactions.

6)    Due Diligence: A thorough due diligence process is mandatory for all property transactions. This will include, but is not limited to, the following:

a)    Title Investigation: Ensuring satisfactory title for acquisition (ideally fee simple, or sufficient lease term) and fully investigating title for disposals;
b)    Planning Compliance: Examining zoning, planning history, potential enforcement actions, and considering planning permission requirements;
c)    Professional Reports: Where appropriate, obtaining necessary reports on condition (architectural, structural, M&E, fire), compliance with regulations, environmental issues, reviewing plans and feasibility studies etc.;
d)    Valuation: Obtaining independent valuation reports to determine market value; &
e)    Tax liabilities: Seeking early advice on the initial and ongoing tax implications of the transaction.

7)    Negotiation: Negotiations must be conducted carefully and confidentially, factoring in external advice including being guided by legal advice. All agreements should be clearly marked as "Subject to Contract" and conditional on necessary University and stakeholder sanctions, title satisfaction, and tax clearance. Key terms for leases (e.g. term, rent, reviews, break options, etc.) must be carefully negotiated factoring in any external advice and available market information.

8)    Conflicts of Interest: University personnel must ensure that no conflict of interest occurs in, or as a result of, property acquisitions or disposals

9)    Audit Trail & Documentation: The entire process, including decision-making, appraisals, due diligence, stakeholder communications and implementation, must be clearly documented to provide a robust audit trail.

10)    Post-Transaction: Upon completion, title transfer must be properly executed and registered. Asset and financial records must be updated, and relevant contracts terminated or initiated.

B. Equipment Disposal

Equipment disposals must be completed in line with the Code of Governance for Universities 2019 (and the State Code of Governance 2016), and in accordance with the University’s Fixed Asset Policy.

University assets cannot be disposed of to staff, retiring staff, or retired staff e.g. laptops, desktops, etc.

The approval matrix for equipment disposals is provided in Appendix 1.

Governing Authority: The Authority has overall responsibility for the University's assets and estate, including approving major acquisitions and disposals of property.

All property acquisitions and disposals are a reserve decision of the Governing Authority.

The Finance and Investment Committee, a sub-committee of the Governing Authority, is responsible for recommending to the Governing Authority a decision to acquire or dispose of property and equipment disposals with proceeds over €150,000. 

DCU Executive Committee: The Committee is responsible for considering proposals, ensuring they are aligned with University policies and procedures, and for recommending approval of any property acquisition or disposal, or equipment disposals of over €150,000 to the Governing Authority.

The President and Chief Operations Officer: These roles serve as ‘Proposers’ for proposed property acquisitions and disposals. Proposers are responsible for presenting proposals for approval and for the ongoing compliance of the proposed transaction with University’s policies and procedures. 

Proposers for equipment disposals with proceeds over €150,000 is the relevant member of the Senior Management Group, whose area is proposing the disposal.

Staff: All staff involved in property transactions are responsible for understanding and complying with both this policy and its related procedures.

Non-compliance with this policy, or its related procedures, may result in consequences as outlined in relevant codes, policies and procedures of the University. 

This policy should be read in conjunction with the following: 

1. The Department of Public Expenditure and Reform Infrastructure Guidelines;

2. Universities Act 1997 (as amended);

3. The Code of Governance for Irish Universities (and State Code of Governance); 

4. The University'sSigning Authority Policy;

5. The University’s Property Acquisition and Disposal Procedures.

Any queries regarding this policy should be directed to the Office of the Chief Operations Officer.

In addition, please contact:

fixedassets@dcu.ie

This policy will be reviewed every three years or as soon as practicable after there has been a material change in any matter to which this policy refers. 

All equipment asset disposals should be completed in accordance with the University’s Fixed Assets Policy. 

All equipment disposal requests to third parties should be accompanied by a memo from the proposing unit or subsidiary company to the Finance Office, explaining the reason for the disposal, how value for money is demonstrated, and the options that have been considered for the equipment including whether the equipment can be used elsewhere in the University.