The new owners of three retail and office blocks fronting on to Nassau Street and Dawson Street in Dublin city centre are planning to create a range of large format stores aimed at international fashion retailers.
The redevelopment will be designed to extend Grafton Street shopping into Nassau Street in much the same way as the arrival of H&M triggered an enlargement of the shopping precinct to include its new store on Andrew Street.
As well as having the potential for a prime retail pitch, Nassau House and the adjoining buildings will remain a first class location for offices with the new owners still considering the options for refurbishing, redeveloping or extending the 7,432sq m (80,000sq ft) of offices on the upper floors.
Nassau House dates from the 1970s and has nine shops at street level. Office space on the four upper floors has always been in keen demand because of its primary location in the city centre.
The complex, sold in an off-market deal for €90 million by the British insurance company Aviva, is producing rental income of €3.5 million.
It was bought by the London-based Meyer Bergman which has joined forces with the Dublin-based fund manager BCP and Eamonn Duignan, the shopping centre developer.
Meyer Bergman will hold a majority stake with the two BCP’s funds committed to taking an equity holding of up to 33 per cent.
Mr Duigan, who recently negotiated his exit from Nama, is to fill the role of development manager.
Asset management
Blake Loveless
, a principal at Meyer Bergman, said they had identified a number of asset management opportunities for the buildings to take advantage of the shortage of large retail units in the area and the considerable appeal of the Dawson Street address for office occupiers.
Nicholas Cullen
, principal property adviser to BCP, said there was a clear trend of international retailers looking to the streets surrounding Grafton Street in search of buildings that could accommodate large stores.
The site was unique in terms of its potential for large retail units as well as a top class office scheme, which would be greatly enhanced by the extension of the Luas line down Dawson Street and Nassau Street.
Chief executive of BCP John Calvert said their BCP International Property Fund had performed strongly in its first six months with a return of more than 14 per cent and once again BCP had won Property Manager of the Year at the Irish Pension Awards.
Kevin Donohue of DTZ is advising the new owners.
