A consortium that led the redevelopment of Clerys and adjacent properties in Dublin city centre does not expect the scheme to be fully occupied until 2027, after which it will explore a sale of the assets.
Clerys Quarter, a mixed-use development comprising office, hospitality and retail space on the site of the former department store, officially opened in March 2024 when H&M lifted the shutters on its new flagship unit.
Luxembourg-based asset manager Europa Capital led the scheme’s delivery with local partners, including Derek McGrath’s Core Capital and Paddy McKillen Jnr, through a Dublin-registered investment vehicle, Oces Property Management (OPM).
New accounts for OPM, which declined to comment on Tuesday, show its revenues increased by more than €1.2 million last year to €1.45 million, primarily driven by increased rental income.
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However, the company lost €15.3 million in 2024, down from almost €19 million in 2023, with accumulated losses reaching €94.2 million at year-end.
OPM took an €5.5 million impairment charge against the value of the properties last year, after recognising a more than €15 million charge in 2023.
The company also paid more than €8 million in interest charges on its borrowings in 2024.
In the notes attached to the accounts, OPM said its stock was reclassified as investment property in 2024, “in line with the future plan to dispose of the assets”.
The vehicle’s remaining investment properties, which comprise the entirety of the assets on its books, were valued at €54.2 million at the end of last year.
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Europa initially acquired Clerys from Deirdre Foley’s Natrium for €63 million in 2018. However, portions of the development have since been sold off, including the 30,700 sq ft Earl Building on North Earl Street in Dublin, to the HSE in late 2023.
The latest filings covered the period in which H&M opened its 31,750 sq ft unit in the former department store, followed by Decathlon in June 2024.
The French sports retailer took a 30-year lease on the 2,787 sq m (30,000 sq ft) unit adjacent to H & M, following the withdrawal in late 2023 of high-end clothing retailer Flannels – owned by businessman Mike Ashley – from plans to lease the ground floor and basement area unit.
In a report attached to the accounts, the directors of OPM said the main development is completed with “lease-up ongoing”. They said: “The assets will be sold following full occupation and stabilisation, which is not envisaged until 2027.”
Rental income “is expected to increase further as the property continues to be leased”, the directors added, providing a “recurring revenue stream”.
Meanwhile, at the end of 2024, OPM owed €29 million to lender GreenOak Europe.
The loan term was extended by one year to December 2025, according to the filings, but the facility was subsequently satisfied in August after Europa refinanced the company.
A balance of €83 million was owed to a Europa subsidiary in Luxembourg at the end of last year.
