A unique opportunity to acquire three prime buildings at the top of Grafton Street and across from St Stephen’s Green, has come to the market with the potential for redevelopment as an apartment building or high-end boutique hotel.
The St Stephen’s Green collection, which incorporates Numbers 1, 3 and 5 St Stephen’s Green, as well as a separate mews building, is being sold by Aviva’s Irish Commercial Property Fund, and is being brought to market by Savills for €13.5 million.
The buildings extend to a total floor area of 1,464.17sq m (15,761sq ft), and include a former outlet of Oasis, which was let over the Christmas period to Cogs Toys and Games, as well as a property currently let to UK fashion retailer Reiss.
The combined properties generate a total rental income of €704,000 a year, and are available in one or separate lots.
Shed Distillery founder Pat Rigney: ‘We’re very focused on a premium position but also on giving value for money to consumers’
Mona McSharry enjoying the scenic route after realising her Olympic dream
The power market should reflect that renewable energy is cheaper
Wake up, people: Here’s what the mainstream media don’t want you to know about Christmas
Stephen McCarthy of Savills said the collection will appeal to a broad cross section of investors, such as “those seeking a fully let flagship retail investment (leased to a global retailer and offering an attractive yield return), coupled with a prestigious refurbishment and/or development project, which could accommodate a variety of uses (subject to planning permission), overlooking St Stephen’s Green and also located within immediate proximity to Grafton Street.”
Lot 1, which is guiding €7 million, comprises 1 St Stephen’s Green, which extends to 402.92sq m (4,337sq ft), and includes ground floor retail accommodation, with storage and ancillary accommodation laid out on the first, second and third floors. The entire property is leased to Reiss, which recently refurbished the ground floor, on a 25-year full repairing and insuring (FRI) lease, from August 13th, 2002, and is subject to a passing rent of €695,000 a year, equivalent to a net interest yield (NIY) of 9.02 per cent.
The second lot offers a refurbishment/development opportunity, with a guide price of €6.5 million, and comprises Numbers 3 and 5 St Stephen’s Green, which are being sold with full vacant possession, as well as a mews building at 7 Anne’s Lane. The latter extends to 99.21sq m (1,068sq ft), and is held on a short-term licence at €9,000 a year.
There is potential here for a residential development; a feasibility study prepared by SSA Architects demonstrates the possibility for a scheme of 11 apartments, including an open courtyard and roof terrace, subject to planning permission.
The collection of properties are within the Grafton Street area of “special planning control”, and in a location which is zoned objective Z5 ‘City Centre’ under the Dublin City Development plan 2022-2028, which aims to sustain life within the city centre, through intensive mixed-use development.
Boutique hotel potential
The properties are adjacent to the former Habitat/Topshop store, at 6-7 St Stephen’s Green, which was acquired by Paddy McKillen jnr and Matt Ryan’s Oakmount vehicle back in 2022 for €17 million.
At the time, Oakmount had considered acquiring additional buildings in the location, including the Hibernian United Services Club at 8 St Stephen’s Green, as well as two other transactions involving two adjacent buildings, with a view to developing a new high-end boutique hotel as part of their Press Up Hospitality group. However, it withdrew from that transaction and the old Hibernian Club was subsequently acquired by alternative fund manager Abbey Capital last autumn for €16 million.
Now however, acquiring the properties could present an opportunity once more for Oakmount’s Press Up group to bring a hotel to this prime tourist location.
Oakmount’s flexible work space associate, Grafter, opened at 6-7 St Stephen’s Green before Christmas, with a café expected to open at the location in the coming weeks.
- Sign up for push alerts and have the best news, analysis and comment delivered directly to your phone
- Find The Irish Times on WhatsApp and stay up to date
- Our In The News podcast is now published daily – Find the latest episode here
