Red Cow site down almost €100m

A 14-acre industrial site beside Dublin’s Red Cow roundabout looks set to be sold for up to €

100 million less than it made during the property boom in 2006.

Agents CBRE are guiding €8.25 million for the complex formerly owned by An Post on the Naas Road, which was sold to two Dublin brothers in May 2006 for €107 million.

Bank of Scotland (Ireland), which provided finance for the site, has prompted the sale by appointing Kieran Wallace and Cormac O'Connor of KPMG as receivers to Gateway Multi-Modal Limited, the company controlled by brothers Gregory and Anthony Alkens who run a wine merchant business in Sandyford.

The 14.1 acres between the pivotal Red Cow roundabout and Newlands Cross had been expected to make about €80 million when the postal service offered it for sale in May 2006 after deciding to relocate its SDS delivery service to one of its other sites in the city.

The sale attracted a large number of bidders including what was described as a “knockout offer” of €27million above the guide price from the Alken brothers.

The €7.5 million an acre selling price was justified on the grounds that as a “gateway” to the city and with the arrival of the Luas line, the planners would allow it to be used for a multi-storey mixed developments of office, apartments and retail facilities.

The Alkens had expected to get permission for 400,000 to 500,000sq ft of apartments, offices as well as a hotel.

Around the same time the seasoned Wexford-based developer Seamus Neville paid €38 million for a six-acre site close to the McCormick McNaughton centre in the same west Dublin area.

CBRE are now advising companies likely to pitch for the 14-acre site that, under the current zoning in the South Dublin County Council development plan, the permitted uses include industrial, retail warehousing, car showrooms, transport depot and petrol stations. Neighbourhood retail may also be considered.

The complex is currently producing a rental income of €517,506 per annum from two companies, JMC and Technetix, who are availing of short leases.

The three industrial buildings as well as offices on the site extend to 16,533sq m (177,961sq ft).

Jarlath Lynn of CBRE said he expected the site would attract the attention of a wide variety of owner-occupiers, investors and developers because of its scale and profile along one of the busiest roadways in the country.

The site is adjacent to the Red Cow Luas stop, which runs from Saggart to the Point Village, a journey that takes about 25 minutes.

The area is also set to benefit from an upgrade of the busy Newlands Cross junction, which will result in the withdrawal of traffic lights.