The Health Service Executive (HSE) is understood to be the front-runner in the competition to secure ownership of US property giant Starwood’s remaining interests at Elmpark Green, the vast office and residential scheme developed in 2007 by Bernard McNamara, Jerry O’Reilly and the late David Courtney at a cost of €550 million.
While the State’s health authority has not been selected as preferred bidder at this point it is said by market sources to be in advanced negotiations in relation to the potential purchase of the Dublin 4 scheme for about €50 million. The HSE had been facing competition from a number of parties including Derek McGrath’s Core Capital, Tetrarch Capital and Lugus Capital for the portfolio, which comprises eight commercial assets including the high-profile Seamark and Vista buildings.
The Dublin 4 scheme is also understood to have attracted bids from Pat Crean’s Marlet Property Group, Shane Whelan’s Westridge Real Estate and Signature Capital.
While agent CBRE had been guiding a price of €55 million for the Elmpark Green scheme, The Irish Times understands those involved in the process tabled offers ranging from €45 million to €50 million.
The HSE’s interest in the Elmpark Green campus is not altogether surprising given the development’s close proximity to St Vincent’s University Hospital. Indeed, the HSE only recently entered into a lease for space at Elmpark Green as part of plans to relocate staff from St Vincent’s to facilitate the expected development of the new National Maternity Hospital at its existing site.
Should a sale of the Elmpark Green portfolio proceed at the €50 million level it would represent a significant discount for the purchaser on the €190 million Starwood paid in 2016 to secure ownership of the current portfolio and two other assets that it later sold.
