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HSE in €50m bid to buy Elmpark campus in Dublin 4

State’s health authority vying to acquire US property giant’s interests at scheme developed by Bernard McNamara in 2007 at cost of €550m

The most significant of the assets being offered for sale at Elmpark Green is the Seamark building

Ronald Quinlan
Fri Feb 16 2024 - 12:49

The Health Service Executive is understood to be vying 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.

The State’s health authority is said by market sources to be 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 the front-runners in the process have tabled offers ranging from €45 million to €50 million. It is understood the HSE and at least one other of the bidders have in recent days been issued with requests for clarifications in relation to their respective bids.

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The HSE’s interest in the Elmpark Green campus isn’t 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.

In the first instance, the US-headquartered investor turned a profit of about €7.1 million from the sale for €59 million of 201 apartments at the scheme to Ires Reit. The second deal saw it secure an estimated €5 million profit from the sale for €58 million of the Irish headquarters of global financial services provider Allianz to Standard Life. The price paid for Allianz House reflected a capital value of just over €672 per square foot based on the eight-storey-over-basement office building’s 86,272sq ft footprint.

In November 2019, Allianz House changed hands once again, with German investment fund Quadoro Doric paying €53 million or the equivalent of €614 per square foot for the property.

The most significant of the assets now being offered for sale at Elmpark Green is the Seamark building. Extending to 184,000sq ft, the subject property has best-in-class ESG credentials including LEED platinum certification and an A3 Ber rating following the completion by Starwood and Joe O’Reilly’s Chartered Land of a €45 million refurbishment in 2018.

The other remaining assets include the 91,000sq ft Vista Building, which is leased to global healthcare company Novartis, producing an annual income of €1.8 million, and six ancillary commercial units extending to a combined 44,000sq ft, which comprise a leisure centre, two coffee shops, a creche, a management suite and a conference centre.

Ronald Quinlan

Ronald Quinlan

Ronald Quinlan is Property Editor of The Irish Times

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