Larry Goodman, Europe's largest beef exporter, has emerged as the purchaser of the Earl of Kildare Hotel on the corner of Nassau and Kildare streets in Dublin 2. It adjoins the Setanta Centre which is also owned by the Co Louth businessman.
He paid slightly over €17 million for the rundown 33-bedroom hotel which is based in five interconnecting four and five-storey buildings.
Although a spokesman for the new owner said there was "no immediate plans" for the hotel site, it is thought likely that he will redevelop the buildings to accommodate a large volume of retail space on the ground floor and offices overhead.
The Setanta Centre includes the Kilkenny crafts shop and, according to retail agents, there is considerable demand for further shopping space on Nassau Street because of its proximity to Dawson Street and Grafton Street.
As well as the Kilkenny shop, Nassau Street also has the popular Blarney Woollen Mills and House of Ireland.
A spokesman for Goodman said that, because of long term lease agreements, there are no changes planned for the adjacent Setanta Centre.
Goodman, who has a large commercial property portfolio in Dublin, bought the Setanta Centre from Green Property Co for €85 million in 2003. It is producing a rent roll of over €5 million from 9,290sq m (100,000sq ft) of offices, most of it let to the Government and the Revenue Commissioners.
There is also 1,848sq m (20,000sq ft) of retail space, the bulk occupied by the Kilkenny shop. The centre was built in 1975 and includes a substantial underground car-park.
The Earl of Kildare Hotel previously traded as Powers Hotel and stands on a site of 650sq m (6,997sq ft), though the buildings have a floor area of only 2,255sq m (24,725sq ft) due to the fact that a large part of the hotel at the rear is single storey.
There is clearly scope for a high rise development at the rear even if the planners insist that the present heights are maintained along both Nassau Street and Kildare Street.
One of the five buildings, 2 Nassau Street, is listed.
Paul Collins of CBRE handled the sale of the hotel and John Mulcahy of Jones Lang LaSalle advised Goodman.
