Cherrywood town centre site with scope for hundreds of new homes guiding at €10m
Having paid about €145 million in 2018 to secure ownership of a portfolio of eight office blocks at Cherrywood Business Park in south Dublin , San Francisco-headquartered real-estate investor Spear Street Capital has instructed agent JLL to find a buyer for a nearby site with residential development potential which it acquired as part of that transaction. The 4.79-acre (1.94-hectare) holding, which is in use as a 491-space car park at present and generating substantial annual income is being offered for sale at a guide price of €10 million. Located within close proximity to both junction 16 of the M50 motorway and the junction of the N11 and Wyattville Road (R118), and within a short walk of the Luas green-line terminus at Bride’s Glen, the subject site is zoned “town centre environs” under the Cherrywood strategic development zone (SDZ). This zoning allows for a range of uses including residential and strategic urban employment. In a recent amendment (number 11) to the Cherrywood SDZ, Dún Laoghaire-Rathdown County Council increased the share of residential space to 55 per cent along with a commensurate reduction in employment space to 45 per cent. The variation in the plan also provides for buildings ranging in height from three to six storeys with a maximum gross floor space of 38,800sq m (417,600sq ft). Under the SDZ developers will also be able to submit fast-track planning applications, with the local authority required to issue a decision within eight weeks. The selling agent believes the site has the potential to accommodate about 250 apartments subject to planning permission . South Dublin apartment portfolio primed for €130m sale The arrival to the market of the Spear Street site land comes just four months after DLR Properties (DLRP), a subsidiary of Dún Laoghaire-Rathdown County Council, sought expressions of interest from developers for the adjoining 5.4-hectare (13.3-acre) Town Centre 3 site, which has full planning permission in place for 418 apartments. The site’s capacity could, however, potentially be increased to up to 1,150 residential units along with 52,000sq m (559,723sq ft) of other town-centre-type uses (retail, office and civic) following the council’s aforementioned amendment to the Cherrywood SDZ. In June, Hines and King Street Capital put another nearby site of 8.65 acres up for sale through agent CBRE at a guide price of €40 million. A feasibility study, prepared by architects Henry J Lyons and Allford Hall Monaghan Morris, indicated that site’s potential to accommodate up to 600 apartments, alongside about 30,000sq m (322,917sq ft) of retail, leisure and complementary uses, subject to planning permission. Commenting on the sale of Spear Street Capital’s site, Ollie Lyons of JLL said: “We expect a high level of engagement from prospective buyers given the attractive lot size and the site’s potential to deliver a high-density residential-led scheme in an acutely undersupplied market, subject to planning permission. The existing short-term income will be particularly attractive to investors and developers alike.”