Hibernia REIT has moved into pole position to take over a major site in Dublin after it agreed terms to buy two small properties on the same block.
In a stock exchange announcement, the property firm said it closed on 8/9 Hanover Street East, a part two, part four- storey office building and 11 Lime Street, a refurbished three-bedroom, four-storey house. The properties are valuable as they sit on the same block as a 1.8 acre site that is being sold by the Hickey family with a guide price of €30m.
That property has a 50:50 commercial/residential zoning under Dublin City Council's Strategic Development Zone (SDZ) and is being marketed to build 74 apartments and 140,000 sq ft of offices.
By buying the two properties yesterday, Hibernia has forced itself into the box seat to either take the Hickey site or make a substantial profit on the two buildings if they sell them to another developer.
While SDZ allows for fast-track decisions, industry sources believe any overshadowing of Hibernia's Lime Street site may limit the height an owner of the Hickey site could gain approval for. Owning the entire block would remove this issue.