The High Court has allowed Goldstein Property ICAV’s challenge to the appointment of receivers over 47 commercial properties to continue, but has removed the lis pendens that had effectively prevented the properties from being sold.
The dispute arises from loans of more than €150 million advanced by RELM entities to Goldstein Property Fund II, a sub-fund of Goldstein. The loans were secured over a portfolio of commercial real estate in Ireland and were due for repayment on 30 September 2024 after an agreed extension.
RELM appointed Ken Fennell and Brendan O’Reilly as receivers on 13 November 2024 after the loans were not repaid. Goldstein later issued proceedings claiming RELM had agreed, through representations and conduct, to extend the facilities for two years with an option for a further year. RELM disputes that such an agreement existed and also relies on alleged failures to make interest payments.
Mr Justice Michael Twomey described Goldstein’s substantive case as “very weak” on the evidence then before the court. However, he held that it was not clearly bound to fail and therefore should not be struck out without a full hearing.
The separate question was whether Goldstein was entitled to register a lis pendens against the secured properties. Such a registration alerts purchasers to litigation concerning land and, in practice, can prevent a sale while proceedings remain unresolved.
The court held that a receiver does not acquire an ownership interest in the land but instead has contractual authority to transfer it. On that basis, litigation challenging a receiver’s appointment is not a claim to an “estate or interest in land” within section 121(2)(a) of the 2009 Act.
The lis pendens will therefore be vacated, allowing the receivership sales process to proceed subject to any other court order. The underlying proceedings remain alive, and the court made no final determination on whether the receivers were validly appointed.