Irish Life Investment Managers is to replace a 1960s office block on St Stephen's Green with a development adjoining another new office scheme being funded by billionaire businessman Denis O'Brien.
A planning application was due to be lodged today with Dublin City Council for the redevelopment of Hainault House at 69-71 St Stephen’s Green, Dublin 2.
The 3,066sq m (33,000sq ft) block, built in 1966, is to make way for a 5,388sq m (58,000sq ft) development rising to six storeys over a double basement.
The proposed building, which includes 20 car-parking spaces, is designed by Dublin architects A&D Wejchert to achieve a BER rating of A3 which will make it one of the most environmentally friendly in the city. “Its distinctive stone and glazed façade will complement the quite different styles of its neighbours on either side and can best be described as quietly dramatic,” according to Irish Life.
Work began on the redevelopment of the former Canada House next door in late 2013. Aircraft leasing company Aercap agreed in April to pay a benchmark rent of €645 per sq m (€60per sq ft) when it moves into the new six-storey LXV block next year at the junction of St Stephen's Green and Earlsfort Terrace. The 25-year lease includes a break option in year 15. Because of the strong interest in letting the LXV block, the capital value of the property will be boosted by at least €12 million.
Record rent
On the other side of Hainault House is the seven-storey 75 St Stephen’s Green, the former Department of Justice building. Its redevelopment was completed by Garret Kelleher’s Shelbourne Developments in 2006 and the upmarket office scheme set a record rent for Dublin in March 2008 when US hedge fund management company
Hedgeserv
agreed a lease on 3,108sq m (33,454sq ft) at €700 per sq m (€65 per sq ft) and €4,500 for car-parking spaces.
Strong demand
The redevelopment of Hainault House is expected to cost around €20m plus VAT to construct. Roland O’Connell, chairman of property consultants
Savills
Ireland, letting agents for the scheme, said: “There is strong demand for high quality office space in prime locations, and this development will allow the creation of new jobs in a high quality environment.”
Fergus Dowd, of Irish Life Investment Managers, said the redevelopment will “enhance the performance of our property portfolio and contribute to the infrastructure of Dublin. We believe we are developing an excellent asset . . . while making a positive contribution to the built environment.’’
