WeWork agrees deal for Clerys office space following redevelopment by new owners

New lease of life: Clerys premises is set for a transformation

Ronald Quinlan Email

January 17 2019 02:30 AM

WeWork, the world's biggest provider of flexible work space, has agreed heads of terms to lease the former Clerys premises on O'Connell Street, Dublin, following its redevelopment by its new owners, the Irish Independent can reveal.

While work on the transformation of the historic department store into a major mixed-use development comprising offices, retail, and a boutique hotel has yet to get underway, sources familiar with the matter said that WeWork has agreed to take all 8,974 sq m (96,595 sq ft) of office space within the scheme for a rent in the region of €65 per square foot.

News of the deal comes just three months on from international investor Europa Capital's €63m acquisition of the Clerys property from businesswoman Deirdre Foley's Natrium consortium.

The company, which is part of the New York-based Rockefeller Group, is working with local partners and shareholders, Core Capital and developer Paddy McKillen Jr's Oakmount, to deliver on the scheme, which is being branded as the Clerys Quarter.

Outside of Oakmount's interest in the Clerys property, McKillen Jr's hospitality group, Press Up Entertainment, is expected to operate both the hotel and rooftop bar and restaurant within the development.

Elsewhere in the city centre, WeWork is also reported to have entered into talks with McKillen Jr with a view to leasing the entirety of the office space at the former New Ireland Assurance headquarters building on Dawson Street.

Having acquired the property for €38m last June, the developer has, as the Irish Independent reported last week, sought permission from Dublin City Council to refurbish and extend the iconic building through the addition of two setback floors.

Should the proposal be approved, the property's 6,731 sq m (72,452 sq ft) floor area would increase to 9,207 sq m (99,103 sq ft).

While the plan envisages the bulk of the premises continuing to operate as offices, it also seeks a change of use for the ground floor to restaurant.