Having come close to being sold for well in excess of its €13 million guide price late last year, Montague Court, a 1970s office building primed for redevelopment, has returned to the market. On this occasion, agent HWBC is guiding €13.2 million for the property following the restructuring of its lease agreements. When the property went on sale last year, all the tenant leases were set to expire on May 31st last. As part of the restructuring, it will now be fully let until at least 2028, providing the purchaser with a steady stream of rental income while they pursue planning permission for a redevelopment of the prime city centre site.
Located on Montague Street, just off Harcourt Street and within proximity to St Stephen’s Green, Montague Court was developed originally under the name of Bell House in 1973. And while it was refurbished in 1999, the building’s age is evident from the fact that it extends to just 2,500sq m (27,000sq ft) while occupying a site, which at 0.193 hectares (0.476 acres), would be capable of accommodating a development of up to 9,290sq m (100,000sq ft).
The property comprises three floors of office space over a double-height reception area with car parking at ground level. There is also a small mews building on its grounds.
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The property is generating about €1.1245 million in annual rental income from a strong tenant line-up that includes the Department of Justice, Home Affairs and Migration and Romeril Forensic Engineers.
RM Block
Development Potential
The building is zoned “Zone Z5 – City Centre” under the Dublin City Development Plan 2022 – 2028. This designation allows for a range of uses including office, hotel, student accommodation, medical and related consultants and tourist hostel. Feasibility studies by prepared by RKD Architects before the sale suggest the site has potential for the development of a new eight-storey over-basement office building of about 9,600sq m (103,000sq ft) or alternatively a new 133-bedroom hotel or a purpose-built 154-unit student accommodation block, all subject to planning permission. RKD have also explored the options for refurbishing and extending the existing structure.
Montague Court is situated on Montague Street which links Harcourt Street with Camden Street and is accessed off Montague Lane. The surrounding area is home to a strong mix of retail, hospitality and leisure occupiers. This area has undergone substantial renewal and development over the past number of years. Recent notable developments include the nearby Wythe Building and the Greenside Building, a new 10-storey office nearing completion on Cuffe Street.
Montague Court is being offered for sale at a guide price of €13.2 million, reflecting a net income yield of 7.75 per cent after standard purchaser’s costs of 9.96 per cent. The weighted average unexpired lease term (WAULT) is 4.62 years from October 1st, 2025.
