Cheyne Capital and D2 Private buy stores beside Clerys

UK fund Cheyne Capital and D2 Private, Dublin developer Deirdre Foley's company, have bought the Spire portfolio of retail outlets near the old Clerys shop in Dublin. The portfolio was on the market for about €10 million. They have vowed to press ahead with plans to redevelop the Clerys site, amid rumours UK retailers have been circling the property.

Industry sources this week said companies linked to Mike Ashley, who controls Sports Direct and Heatons, are interested in moving into the Clerys building, which is being lined up as the centrepiece of a major retail-led redevelopment.

High-quality redevelopment

Cheyne and D2 did not comment on the speculation about Mr Ashley’s interest, but it is understood a deal with his UK discount sports retailer is not in place at the moment.

“We are pursuing a high-quality redevelopment, subject to planning, which will be capable of attracting desirable, long-term tenants,” said Ms Foley.

The Spire portfolio comprises a number of shops beside Clerys fronting on to O'Connell Street and Abbey Street. It was put on the market last May by Markland Holdings, a company controlled by developer Seán Mulryan.

The buildings include about 40,000sq ft of retail and office space, with tenants including a bookmakers, a convenience store and a hair salon. A number of units in the portfolio are vacant. The stores in the Spire portfolio could be incorporated into a redeveloped Clerys.

Extending footprint

Cheyne and D2 also own another building on nearby Sackville Street, which could also be used to extend the Clerys footprint.

They paid €29 million last June for Clerys, which was immediately shut with the loss of more than 400 jobs. Cheyne took an 80 per cent stake in Natrium, the company that conducted that deal, while Ms Foley took the remaining stake.

Cheyne and D2 said their purchase of the Spire portfolio represents their “commitment to the city of Dublin” and reiterated they are “fully committed” to the Clerys redevelopment.

“Plans for the redevelopment of the Clerys building and adjoining properties are in progress. Cheyne and D2 are excited to be involved in the potential for creating a new high-quality quarter on O’Connell Street with a view to playing a part in the reinvigoration of . . . the city centre,” they said.

Ms Foley said it would constitute “a vibrant place in Dublin where people can work, shop and have fun”.