Hume Street Hospital - for sale at over €25 million - will be redeveloped as a boutique hotel, offices or high value apartments, writes Jack Fagan
One of the most prestigious redevelopment opportunities to arise in Dublin city centre in recent years comes on the market today when Hume Street Hospital, off St Stephen's Green, goes for sale by tender.
Ronan Webster of CB Richard Ellis is quoting over €25 million for the substantial Georgian terrace but, given its superb location on Hume Street (between Ely Place and St Stephen's Green), he says he will not be surprised if it makes over €30 million.
The general consensus is that the hospital will be redeveloped either as a boutique hotel, offices or high value apartments.
Several international hotel groups specialising in boutique hotels have been on the lookout in the city centre for a suitable venue.
Similarly, there is any number of developers in the market for the best apartment sites - it is rare enough that a site of the quality of Hume Street becomes available.
With the hospital located on a site of 0.4 acres, there is scope to provide at least 80 good-sized apartments, as well as underground car-parking. High quality apartments on the site could be expected to sell for over €3 million each.
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 there 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 an underground car-park is installed off Bells Lane at the rear, the site can accommodate a new build of between 3,716sq m and 5,574sq m (40,000sq ft and 60,000sq ft).
There will also be scope to enlarge the site along Hume Street where, according to an estate agent, IIB Home Loans has paid a reverse premium of over €1 million to offload its lease of 2 Hume Street which is owned by Irish Property Unit Trust (IPUT). IIB had been paying a rent of over €600,000 for the 1,486sq m (16,000sq ft) of space and 22 car-parking spaces.
IPUT's investment manager, Niall Gaffney, said yesterday they would be retaining ownership until they ascertained the development potential of the entire street. Interestingly, the adjoining building at the corner with St Stephen's Green is also to become vacant with the decision by Barclays Bank to relocate to Hume Street.
The Irish Airline Pension Fund, which owns the block, is likely to follow the example of IPUT: pitch for a substantial reverse premium and sit tight in the meantime.
Attempts by several developers to acquire this lease in order to muscle in on the redevelopment for Hume Street have so far been turned down.
Hume Street Hospital, originally known as Dublin City Skin & Cancer Hospital, is to close at the end of October following the transfer of patients to St Vincent's Hospital at Elm Park.
The board of Hume Street has decided to use the proceeds of the sale for charitable purposes mainly in the medical area.
The hospital was founded in 1911 by Andrew Charles FRCSI. The Hume Street houses, including the portico entrance, were built by the surgeon and property developer Gustavas Hume in the latter part of the 18th century.
