DUBLIN—Dalata has acquired DS Charlemont Limited, which owns the former Charlemont Clinic Site, in Dublin 2, from U.K. and Ireland regeneration developer U+I plc for a consideration of €11.9 million (roughly $13.3 million). The consideration is payable in cash.
The site is located in Dublin 2, fronting on to Charlemont Street and Charlemont Mall on the Grand Canal. On Jan. 19, Dublin City Council granted permission, subject to conditions, for a four-star 181-guestroom 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. As part of the planning process the permission is subject to review by An Bord Pleanala. The total size of the site is 0.95 acres.
The company plans to complete the planning process, enabling the construction of a new Clayton Hotel expected to be completed in the first half of 2018. The overall investment in the project, including the site purchase, will be in excess of $44 million, creating circa 100 new employee positions when the hotel is operational.
Maldron Hotel Parnell Square
The Company has agreed to acquire the freehold interest in the Maldron Hotel, Parnell Square, Dublin 1 for a consideration of €15.3 million. It is expected that the transaction will complete in August 2014.
Maldron Hotel Parnell Square is a 3 star hotel located in Dublin City Centre. The hotel contains 126 rooms as well as a bar / restaurant and 2 conference rooms. The hotel has been operated by the Group since August 2007 under the terms of a 25 year leasehold agreement with an annual rent of €1.1m per annum subject to upward only rent reviews at five year intervals. The next rent review is due in March 2017.
The consideration is payable in cash. The Parnell Acquisition will consolidate the Group’s position in the Dublin market and allow it to develop the business of the hotel to its full potential.
Pearse Hotel
In a separate transaction, the Company has agreed to acquire the freehold interest in the Pearse Hotel, Pearse Street, Dublin 2 for a consideration of €14.4 million including adjoining retail and office properties.
Completion of the Pearse Acquisition, subject to closing conditions, is scheduled to take place within the next 3 months. The consideration is payable in cash.
Facilities at the hotel include 101 en-suite bedrooms, bar/restaurant, and 5 conference rooms. The adjoining retail and office properties extend to 392.7 square metres. Profits attributable to the Pearse Hotel in 2013 were €0.7 million.
The Company plans to carry out an extensive refurbishment programme and restore the property to a high quality four-star hotel. The Hotel will be re branded as Maldron Hotel Pearse Street.
Pat McCann, Chief Executive Officer of the Company, said:
“We are delighted with these two acquisitions. Maldron Hotel Parnell Square, which we have operated since it opened in 2007, is a key property in the Maldron brand. The Pearse Hotel, with its excellent location in Dublin city centre, is an exciting addition to the portfolio. Refurbished and re-branded as Maldron Hotel Pearse Street, it will be a perfect complement to the existing six Maldron properties in Dublin at Cardiff Lane, Parnell Square, Smithfield, Tallaght, Citywest and Dublin Airport.”
