A property consortium backed by Paddy McKillen Jnr has sold part of the Clerys Quarter development to the HSE, which will operate the building as a new outpatient facility for the Rotunda Hospital.
Europa Capital, a Luxembourg-based asset manager and principal investor in the project, has completed the sale of the 30,700sq ft Earl Building on North Earl Street in Dublin. It represents approximately a third of the office space at the city centre scheme, which also includes a hotel and retail units.
Europa said the HSE would now transform the building into an outpatient facility serving maternity, paediatric, colposcopy and perinatal mental health patients, incorporating physiotherapy and social work services as well.
The project is being delivered by Europa in conjunction with its Dublin-based minority partners Mr McKillen Jnr and his business partner Matt Ryan’s Oakmount property vehicle, along with Derek McGrath’s Core Capital through a company called Oces Property Holdings.
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In a statement Europa said the “phased reopening” of the iconic Clerys building is “expected to start over the coming months”, with a Pret a Manger due to open in December followed by “a second phase in spring of next year”.
H&M is currently fitting out its 31,750sq ft unit in the former department store. Europa said on Friday that takeaway sushi restaurant Rolled has also now signed a 400sq ft lease at Earl Place Market within the Clerys Quarter development.
The wider development has been mired in controversy in recent weeks after clothing retailer Flannels purported to pull out of its agreement to take the lease on the other ground floor and basement area unit of the building, covering some 30,000sq ft.
Last month Oces took Flannels, part of Sports Direct owner Mike Ashley’s retail empire, to the High Court seeking orders in relation to the invalidity of the purported termination notice. It is also seeking specific performance of the defendant’s obligations under the lease agreement as well as damages.
The court heard that mediation is taking place and the matter was adjourned until December.
Mr McGrath said: “Today’s announcement marks a significant milestone for Clerys Quarter as we continue to develop a vibrant mixed-use space in the heart of Dublin city centre.”
James Keast, asset management director at Europa, said: “The agreement to sell the Earl Building to HSE on behalf of the Rotunda Hospital is a big development for the wider Clerys Quarter. We anticipate that the opening of the outpatient services, along with the recent food and beverage lettings at the Clerys Quarter development, will support the overall ecosystem of the area.”
