Fiona Reddan

Property investment company Hibernia REIT said on Tuesday that it has received full planning permission for Phase 2 of the redevelopment of the Garda control centre at Harcourt Square in Dublin, paving the way for a “landmark development” on the site.

Together with planning permission for Phase 1 of 134,000 sq. ft., which was received in late 2015, Hibernia now has full planning permission for up to 276,500 sq. ft. of new offices and ancillary accommodation on the 1.9 acre site.

Kevin Nowlan, chief executive said: "We are delighted to have received full planning permission for Phase 2 of Harcourt Square: this is an important step in our plans to deliver nearly 280,000 sq. ft. of new offices in a prime central Dublin location, just two minutes' walk from St Stephen's Green."

Hibernia acquired the site for €70 million in 2015 but it is currently at the centre of a legal dispute with the Office of Public Works (OPW) as Hibernia is seeking vacant possession of the site. It’s understood that no alternative accommodation has been lined up for the 500 people working in Harcourt Square, in the event that Hibernia moves to redevelop the site.

In a note, John Cronin, analyst with Investec, said he expects Hibernia to set out its plans for the demolition and redevelopment of the building before the current calendar year-end. Should it go ahead with the development, he calculates a net potential value uplift of € 134 million, assuming a yield of 4.25 per cent and an ERV of € 60 per sq ft for the redeveloped building (assuming a prime Grade A build).