Fitzpatrick Hotels sees Leeson Street houses double in price

The Fitzpatrick Hotel Group has sold five adjoining Georgian houses in Leeson Street, Dublin 2, for £7 million - £1.2 million more than was offered at tender last December and virtually double what the group paid for them two years ago. The new owners are expected to use the houses and a site at the rear for offices and apartments. The price underlines the huge rise in values over the past two years because of the continuing economic boom, low interest rates and the sheer weight of money chasing commercial investments. Neil Love, of agents Druker Fanning, who sold the property by private treaty, said the sale reflected the higher prices available for good Georgian office buildings. There were three main contenders for the houses, all of them investors. Pat Gunne, of Gunne Estate Agents, advised the under-bidder, who was planning to use the houses for offices and develop apartments at the rear. Fitzpatricks, which bought the buildings in April, 1996, for £3.8 million, had been unsure what to do with them since April of last year when An Bord Pleanala overruled a decision by Dublin Corporation granting permission for a four-star hotel with 140 bedrooms. The plan would have involved the demolition of an unlisted mews house office building at Adelaide Road/Leeson Place and the construction of a four-storey over basement with attic extension to accommodate a swimming-pool, gymnasium and a 145 space car-park.

Although obviously pleased it had been offered £5.8 million by tender last December, the hotel group withdrew the houses following a decision to carry out another reappraisal of the potential for developing the site as a hotel. Eventually, Fitzpatricks acknowledged it would have difficulty in securing permission for a hotel of this size and decided to sell them. The five buildings have 25,000 sq ft of office space and surface car-parking for 70 cars. Easily the best of the buildings are three formerly occupied by Ansbacher Bank. The other two, rented for many years by Frank Glennon insurance brokers, need considerable refurbishment.