A scheme of high quality offices and apartments is on the cards for Hume Street Hospital, writes Jack Fagan

One of the best known buildings in Dublin city centre - Hume Street Hospital off St Stephen's Green - is to be redeveloped as high quality offices and high value apartments following its sale for just over €30 million.

A Dublin developer with wide experience in both the office and apartment markets outbid four others for the Georgian terrace which is located between Ely Place and St Stephen's Green.

Ronan Webster of CB Richard Ellis handled the sale for the trustees of the hospital while Peter Brown of Davin Estate Agents acted for the purchaser.

Architects for the new owner are currently looking at various ways of maximising the value of what is one of the best located sites to have come on the market in the city centre in recent years.

The choice is expected to between either 1,828sq m (20,000sq ft) of offices and about 20 large apartments or 3,716sq m (40,000sq ft) of offices and at least 10 apartments. Both options provide for spacious apartments of about 92.9sq m (1,000sq ft) which would be expected to sell for over €2 million each.

There is undoubtedly a ready market for luxury apartments close to St Stephen's Green and within two minutes walk of the newly refurbished Shelbourne Hotel which is due to open for business early next year.

With the former hospital located on a site of 0.4 of an acre, the new owner plans to install a basement car-park with between 35 and 40 spaces entered from Bells Lane at the rear next to the RHA Gallagher Gallery.

The five interconnecting Georgian houses fronting on to Hume Street are listed for preservation and have a combined floor area of 2,601sq m (26,000sq ft). Behind the houses is a range of poor quality 1920s buildings which will be demolished to make way for a modern block.

Architectural studies have shown that, once the basement car-park is in place, there is scope to develop up to 5,574sq m (60,000sq ft).

The new owner of Hume Street Hospital is expected to hold discussions shortly with the owners of two adjoining modern buildings which look set to become vacant and which complete the streetscape.

Next door, the Irish Property Unit Trust has regained possession of 2 Hume Street after accepting a reverse premium of over €1 million from IIB Home Loans to take back its lease. IIB Home Loans had been paying a rent of over €600,000 for the 1,486sq m (16,000sq ft) building and 22 car-parking spaces.

The adjoining building at the corner with St Stephen's Green is also expected to become vacant with the decision by Barclays Bank to relocate to Upper Mount Street.

The building is owned by the Irish Airline Pension Fund which, like IPUT, will be intensely interested in any property play on the street.