NEW GENERATION, a property development company backed by fund manager M&G, has staked a claim to a corner of what is probably the finest development opportunity in Dublin city centre.
The company, which is headed by Patrick Crean and Greg Kavanagh, has bought College House, a nine-storey office building on Townsend Street in Dublin 2, formerly occupied by An Post.
The grim 1970s edifice, which is unoccupied, backs on to the 12-storey Hawkins House, occupied by the Department of Health.
The purchase will be viewed as a shrewd land grab ahead of the future redevelopment of the city block where both buildings sit.
The Office of Public Works told The Sunday Times earlier this month that it was “evaluating a range of options for the future use of Hawkins House” and this had “involved discussions with adjoining owners”.
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A spokesman added that “while no firm decisions have yet been made, it is envisaged that Hawkins House will be demolished and the site redeveloped”.
A third office building on the city block, Apollo House, next to Hawkins House, was previously owned by the developer Garrett Kelleher, and is controlled by Nama.
The city development plan allows for buildings of up to 22 storeys in height in the City Quay and Tara Street areas.
College House has for many years been owned by the Brennan family, who control the country’s largest bakery.
Both Hawkins House and College House were originally developed in the 1970s by British Land, and are widely regarded as being among the ugliest buildings in the capital.
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The site occupied by College, Hawkins and Apollo houses stretches around three acres.
Any future development of the area bounded by Tara, Poolbeg, Hawkins and Townsend streets is also likely to include the Screen cinema, owned by Irish Multiplex Cinemas, formerly part of Ward Anderson group.
New Generation has bought more than 40 sites in Dublin city and county as part of a planned €300m acquisition programme with backing from the Debt Opportunities Fund run by M&G, which is owned by Prudential Insurance.
Most of its early purchases were residential sites in suburban areas, though the company is increasingly scouting out commercial development sites.
Last May it paid €40m for the former An Post sorting office at Cardiff Lane in the nearby Dublin docklands.
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The company will shortly submit planning application for 200,000 sq ft of so-called Grade A office space, and up to 100 residential apartments on the Cardiff Lane site.
New Generation’s offices are based on Poolbeg Street, facing Hawkins House.