Sunday 18 March 2018

George's St site set to be redeveloped after selling for well over guide price

The property on South Great George’s Street had been marketed for more than €6m by Knight Frank
The property on South Great George’s Street had been marketed for more than €6m by Knight Frank
Peter Flanagan

Peter Flanagan

A private individual is believed to have paid more than €7m for a block on one of the main streets in central Dublin.

The property at 41 to 46 on South Great Georges Street was put on the market by Knight Frank with an asking price of €6m.

The large Victorian four storey over basement property is considered one of the top redevelopment opportunities in the city.

James Meagher of Knight Frank, who managed the sale, commented that the property received a "significant level of interest due to the exciting redevelopment opportunity it offers and due to the lack of new retail / office opportunities in Dublin 2 at present."

Mr Meagher declined to comment on the terms of the sale. Other industry experts however believe a property such as this would have changed hands for as much as 30pc above the asking price. That would put the sale price in the region of between €7m and €8m.

The sale price at that level would also represent a steep discount on the price the property changed hands for in the boom. It was bought for some €17m in 2006.

There are two live planning permissions in place for redevelopment. A planning consent dating back to 2006 allows for the demolition of the entire block with the exception of the facade on to South Great George's Street and part of the facade around the corner on Lower Stephen Street, and its replacement by a mix of retail and offices extending to 5,177 sq m (55,724 sq ft). The permission was extended to July 2016.

The redevelopment plans were scaled back however three years ago and a second permission was granted for the refurbishment and extension of the buildings to provide 2,486 sq m (26,758 sq ft) of retail space in three separate units.

If the new owner goes ahead with a redevelopment of the property, it will be the latest major construction project in the capital that is beginning to see more and more development.

Office Blocks are being built on St Stephen's Green and in parts of Dublin 4, while businessman Larry Goodman is refurbishing the former Bank of Ireland headquarters on Baggot Street.

While the main retail part of 41 to 46 South Great George's Street has seen a succession of short term tenants in recnt years, the retail market has begun to mount a recovery in recent months, with the south side of central Dublin leading the recovery.

The property is very close to Grafton Street and has an extremely high level of footfall, making it an ideal venue for a new retail business if a redevelopment plan goes ahead.

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