Development Sites: The long-delayed sale by the Office of Public Works of the leasehold interest in an apartment site of less than one acre at Lad Lane in Dublin 2 is finally to go ahead next month.
Agent Hamilton Osborne King is quoting a guide price of €10 million for what has the potential to be one of the best-located residential sites to come on the market in the inner city in recent years.
The OPW first announced its intention to dispose of the Lad Lane store and yard at the beginning of March, 2003. But when the sale did not proceed last summer it was thought that the delay arose out of the ongoing discussions with Pembroke Estates to acquire the freehold of the property.
However, 11 months later it now transpires that the OPW has failed to buy the freehold interest. A press release from HOK, approved last Friday by the OPW, mentions "a long leasehold interest" - in fact, it has another 92 years to run.
The OPW said yesterday that the title to the site included "restrictive covenants". These are understood to include restrictions on the future development of the site. Not surprisingly, developers planning to pitch for the property will first attempt to acquire the freehold before tendering on March 10th.
When the sale was first announced last spring, official sources suggested that the guide price would be around €15 million - a full €5 million more than the current guide from HOK.
The rectangular-shaped corner site measures 0.96 of an acre and has extensive frontages on to both Lad Lane and Pembroke Row.
The OPW has been using the site as a maintenance depot and workshop facility for the past 30 years; according to the selling agent, it was previously used as a builders' yard by John Sisk & Son.
HOK is advising likely purchasers that the residential zoning on the site and the scale of the adjoining buildings provides an opportunity "to develop a high density signature building for residential use".
Apart from Lad Lane and Pembroke Road, the site is bounded to the west by the seven-storey high Wilton Park House offices and by the five-storey Wilton Court apartments and multi-storey offices.
HOK estimates that planning permission may be secured for about 150 apartments and, given an approximate value of €500,000 per unit, the gross development value could exceed €75 million "which makes the guide price of €10 million, even for a long leasehold interest, seem like good value".
Pembroke Estates would make no comment yesterday on its interest in the Lad Lane site.
