A consortium of leading Dublin property developers is to develop housing on a four-acre site beside the Jefferson Smurfit headquarters in Clonskeagh. Jack Fagan, Property Editor, reports.
A group of Dublin property developers has bought the Jefferson Smurfit headquarters at Beech Hill in Clonskeagh, Dublin 4, for €25 million.
The packaging company, which was taken over more than a year ago by US venture capitalists Madison Dearborn Partners for €3.7 billion, has agreed to lease back one of the two office buildings on the site at a rent of €500,000 per annum.
Ownership of an adjoining office block of 1,207 sq m (13,000sqft) and a four-acre development site passes immediately to the consortium which is comprised of Paddy Kelly, John Flynn and their families together with Alanis, which is controlled by the McCormack family.
The new owners of Smurfit are understood to be anxious to offload as much of the company's Dublin property as possible.
It is not known if there are plans to sell off and lease back any of the main manufacturing plants.
However, estate agent Hassett is known to be quietly looking for a buyer for the former Smurfit printing plant at Glasnevin.
The 9,290 sq m (100,000sqft) building has been closed for several years and when sold will probably be redeveloped for both offices and housing.
Hassett is looking for €20 million for the plant.
The most coveted site in the Smurfit portfolio is undoubtedly the paper manufacturing plant on the side of the Dodder in Clonskeagh.
This site probably extends to over four acres and would be ideal for a large apartment development.
The planners would prefer to see the factory moving out of the city to make way for a residential scheme.
It was known for some months that Smurfit planned to sell off the development site beside the headquarters but it will come as a surprise that the HQ buildings have also been included in the package.
Significantly, the newly- signed 10-year lease of the building back to Smurfit provides for no less than three break options.
Stephen Cassidy of Hamilton Osborne King, which handled the sale of the property, and Willie Dowling of CB Richard Ellis Gunne, will be seeking a tenant for the for second office building which can be separated from the headquarters.
The syndicate taking over the four-acre development site beside the Riverview sports club will be hoping to get planning permission for up to 50 residential units per acre.
There is also scope to provide student housing next to the UCD campus. The tax breaks for such schemes are due to run out at the end of 2004.
If the new owners decide to build a conventional apartment scheme they can expect to pick up premium prices for the units because of the popularity and convenience of Clonskeagh.
The Kelly/Flynn/Alanis syndicate has carried out several major commercial and residential schemes in the city in recent years.
In some of the developments they have brought in other partners, such as at the huge Smithfield apartment scheme, where the Linders company is involved, and at Gallery Quay on Grand Canal Dock, where Pierse Construction has a stake.
Clonskeagh has already been a lucky area for both Mr Kelly and Mr Flynn.
About six years ago they developed more than 33,444sqm (360,000 sq ft) of business space at Belfield Office Park. The two businessmen retained ownership of about 75 per cent of the space, which is let to top class tenants.
