Derek McGrath’s Core Capital closing in on €10m deal for New Ireland office block

Derek McGrath’s Core Capital is understood to be closing in on the purchase of number 5-9 South Frederick Street in Dublin’s south city centre. Although efforts to contact Mr McGrath for comment on the matter were unsuccessful, The Irish Times understands negotiations are ongoing for a sale of the 1960s office building for about €10 million. Should a deal proceed, and at that price level, it would represent a near 17 per cent discount on the €12 million agent CBRE had been seeking when it brought the property to the market on behalf of its owner and former occupier, New Ireland Assurance, last October.

Number 5-9 occupies a strong location to the rear of New Ireland’s former headquarters at 9-12 Dawson Street and Dawson Lane, which Core Capital acquired in partnership with Paddy McKillen jnr and Matt Ryan’s Oakmount in 2018. That building, a protected structure, has since undergone a full refurbishment and is due to become the new home of Goodbody Stockbrokers.

New Ireland’s former South Frederick Street premises presents a very different opportunity with a feasibility study undertaken by RKD Architects in advance of its sale suggesting the five-storey over-basement building offers significant scope for redevelopment as a hotel. The study also pointed to the property’s potential to be extended and retained for office use.

Four hotel layouts were designed as part of the RKD study with schemes ranging from a room count of 52 bedrooms up to 137 bedrooms, depending on room sizes and amenities.

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5-9 South Frederick Street occupies a prime location in Dublin’s south city centre. The immediate area is thriving thanks to the presence of numerous leading corporate occupiers including AIB, Davy and Barclays, along with a wide and varied selection of restaurants, cafes and high-end retail on the stretch from Molesworth Street to Grafton Street.