Big changes on O’Connell Street: property portfolio guiding €13m

The company led by businesswoman Deirdre Foley, which recently sold the former Clerys department store in Dublin's O'Connell Street to Europa Capital for a figure believed to be about €63 million, is to offload a large block of retail, office and licensed properties in the city centre.

Joint agents Lisney and Knight Frank are guiding in excess of €13 million for seven properties in O'Connell Street, Abbey Street and Sackville Place following a number of off-market approaches to the owners. The buildings have a substantial footprint extending to 3,716sq m (40,000sq ft) beside the Luas cross-city stops.

The entire portfolio currently produces revenues of €518,279, with 55 per cent of the floor areas vacant.

The collection of buildings is led by two adjoining high-profile commercial blocks on Lower O’Connell Street, which are laid out as four retail units with overhead office space and an overall floor area of 1,880sq m (20,235sq ft). The shops are occupied by Londis, Dublin Tourist Office and PaddyWagon Tours. The upper floors are served by lifts but are presently vacant.

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The selling agents said there are opportunities to upgrade the existing buildings and scope to add additional space as part of a substantial redevelopment, subject to planning. The relaxation of height restrictions in Dublin city should make this a more compelling option, they said.

The sale also includes adjoining buildings at 4 and 5 Lower Abbey Street, which are partially let to Ladbrokes Bookmakers and Madigan’s public house. The two buildings have an overall floor area of 696sq m (7,500sq ft), but here again the upper floors are not used.

Adjoining properties

The collection is completed by adjoining properties on Sackville Place, including a bar, hair salon, dance studio and a vacant two-storey building. The smallest building is the former Sackville Lounge, which the selling agents called a “charming public house which is bound to attract interest from the licensed trade looking to get a foothold in this rapidly developing location”.

The Sackville Place buildings have an overall floor area of 1,068sq m (11,500 sq ft) and are across the street from Clerys, which is shortly to be developed by Europa Capital as a top-class facility extending to 31,956sq m (344,000sq ft) with retail, offices, and restaurants as well as a 200-plus bedroom hotel.

In addition to the Clerys redevelopment, Sackville Place will also benefit from the completion of a new 158 bedroom hotel for the Marriott-backed Moxy Hotel brand, which is due to open in 2019.

Lisney and Knight Frank said the sale was likely to appeal to both the local and international investor/development markets because of the potential to either upgrade the upper floors for offices, education or residential use, or for a comprehensive redevelopment of the various blocks.