Property group U+I has made a profit of £2.3 million (€2.9m) in just 14 months after selling the Charlemont Clinic site in Dublin to hotels group Dalata.
Dalata has acquired the well-located site in Dublin 2 for €11.9 million and said it intends to build a new 4-star hotel.
The company has bought DS Charlemont Limited from U+I in an all-cash deal. U+I and aims to have a new Clayton-branded hotel up and running by the first half of 2018.
U+I, formerly Development Securities, acquired the Charlemont Clinic site for €7.1 million in December 2014. It orignially went on the market with a guide price of €5 million in February 2014.
The site is well located on the south side of Dublin city, approximately 1km north of St Stephen’s Green, between the Barge pub, Charlemont Street and South Richmond Street. The Charlemont Luas stop is situated less than 100m away and the main vehicular and pedestrian access is off Charlemont Mall a road running parallel to the Grand Canal.
Dalata said the 0.95 acre site was granted planning permission last month for a 4-star 181 bedroom hotel with restaurant, cafe/bar and business facilities. The permission also includes three residential apartments and basement car parking. The planning conditions include revisions to the scale of the building which are subject to the agreement of the planning authority.
Dalata estimated the overall investment of the project, including site purchase, will be in excess of €40 million with 100 new jobs created once the hotel is completed.
"The Charlemont Clinic site is very well located in Dublin 2 and is ideally suited to a Clayton hotel. The Dublin hotel market is significantly undersupplied at present and we are pleased to bring these additional bedrooms to the city," said Dermot Crowley, deputy chief executive of business development, Dalata.
The acquisition represent’s Dalata’s first development project, which Davy Stockbrokers said meant the group could develop it in a manner in which it deems most efficient.
In a note to investors, Davy said Dalata still has about €135 million in funds available and expected it to make further acquisitions during the year.
“The purchase and development cost of €40 million represents a price per room of circa €225,000. We believe this announcement is a positive for Dalata, which continues to deploy its capital both fast and efficiently,” Davy said.
